By Tatiana Bautzer

NEW YORK Citigroup CEO Jane Fraser announced a major management reorganization that will give her more direct oversight over its businesses as she seeks to simplify the bank.

The heads of the bank's five businesses will now report directly to Fraser. They include: Shahmir Khaliq, who runs services, Andrew Morton in markets, Peter Babej for investment and corporate banking, Gonzalo Luchetti in U.S. consumer banking, and Andy Sieg in wealth when he joins the company later this month.

"We are making bold decisions to meet our commitments to our shareholders," Fraser said in a statement.

As part of the changes, the company is breaking apart what used to be its largest division, the Institutional Clients Group, and eliminating the leadership role atop that business, which was previously run by Paco Ybarra, who will become a senior adviser to the firm after retiring.

The new model will get rid of some international leadership roles, as well as its personal banking and wealth management arms.

(This story has been refiled to fix a typographical error in paragraph 2)

(Reporting by Lananh Nguyen, Editing by Nick Zieminski)