Nov 26 (Reuters) - Citigroup ( C/PN ) is cutting the number

of year-end promotions it awards as it seeks to hold costs down

amid a long-term restructuring to shrink headcount, the

Financial Times reported on Tuesday.

Managers have been told that as many as 2,000 Citi employees

could get a pay hike and title in the next month, down from

about 8,000 in previous rounds, the FT report said, citing four

people familiar with the decisions.

The pay hikes for promotions are expected to be limited to

15%, the report added.

Citi did not immediately respond to a Reuters request for

comment.

Citi CEO Jane Fraser is implementing a sweeping overhaul of

the bank to improve its performance, cut costs and simplify its

sprawling businesses. As part of the turnaround, Citi aims to

shrink its workforce by 20,000 over the next two years.

Fraser said the bank has simplified its structure to

increase accountability, increased investments in its data

reporting, enhanced stress testing and reduced high-risk

processes with bolstered controls.

The company posted a smaller-than-expected drop in profit

for the third quarter as debt underwriting propped up investment

banking results.