The New York-based Citigroup has alerted its UK employees about potential job cuts amid a major reorganization. The bank, employing around 16,000 in the UK, is progressing to the next phase of its restructuring plans and will initiate a consultation process for employee feedback. Citigroup’s CEO, Jane Fraser, recently unveiled plans for a corporate overhaul to reduce managerial levels and expedite decision-making.
This restructuring will involve job reductions on a global scale, though the exact number remains undecided. Reuters mentions that hundreds of positions in the UK could be affected. Fraser, approaching her third year leading Citigroup, aims to rejuvenate the bank, which has seen a continuous stock decline. Despite being the third-largest U.S. bank by assets, Citigroup‘s domestic retail banking footprint is smaller than rivals like JPMorgan Chase and Bank of America, contributing to its post-2008 challenges.
James Bardrick, UK Citi Country Officer, mentioned in a memo to employees, “We foresee potential role reductions in certain sectors and alterations in others. Some employees might face redundancy risks.” However, the bank hasn’t specified the number of jobs at stake for its UK and Northern Ireland workforce.
Acknowledging the challenges of change, Bardrick stated, “We understand our colleagues’ concerns and are striving to provide clarity swiftly while ensuring proper procedures are followed.” The specific sectors of Citigroup’s UK operations facing layoffs remain undisclosed. Local regulations mandate employee consultations for potential redundancies exceeding 20 positions. Citigroup plans to engage with the London Consultation Forum (LCF) in the upcoming weeks for collective discussions and will also allow Belfast employees to select representatives for this process. Individual consultations will be held for those at redundancy risk.
Fraser characterized these shifts as Citigroup‘s most significant restructuring in nearly 20 years, aiming for increased unit oversight and profitability enhancement. In the U.S., Citigroup has already begun dialogues about potential layoffs, particularly targeting support roles in compliance, risk management, and overlapping tech functions.
Kristine Braden, CEO of Citibank Europe, will depart from the company after a 25-year tenure, aligning with these organizational changes, Reuters informed.
