In a recent internal office memo obtained by Reuters, Citigroup (Citi) has issued a stark warning to its UK-based employees about potential job cuts. This move comes as the banking giant embarks on a significant reorganization that could affect hundreds of jobs within the country. With around 16,000 employees in the UK, Citi is entering phase two of its plans to streamline its banking structure, triggering a consultation process that allows employees to provide feedback. However, the repercussions could involve role reductions and even redundancies.
Uncertainty Looming Large
Citigroup’s UK Country Officer, James Bardrick, acknowledged the uncertain times ahead for employees, stating that change is difficult, and the Bank recognizes the uncertainty that many of its colleagues are experiencing. The bank has pledged to adhere to all legal and regulatory requirements while supporting its workforce through these changes.
The specific number of job cuts remains undisclosed, leaving employees anxious about the future. This uncertainty is part of a broader restructuring effort initiated by Citi’s CEO, Jane Fraser, who recently announced plans to eliminate a layer of management and reduce staff. The overhaul includes shifting to a structure where five divisions report directly to the CEO and eliminating regional roles outside North America.
Consultations
Under UK regulations, organizations must engage in consultations with employees when more than 20 redundancies are anticipated. Citi has committed to consulting with the London Consultation Forum (LCF) in the coming weeks, involving Belfast-based workers in the process. The bank will also offer individual consultations to employees at risk of redundancy, ensuring that the necessary steps are taken in compliance with local laws.
Kristine Braden, CEO of Citibank Europe, will be departing the company after 25 years as part of this organizational change. This move reflects the significant nature of the restructuring, which Citigroup has described as its most extensive reorganization in nearly two decades.
Transnational Impact
While the immediate focus is on the UK, recent reports indicate that discussions about potential layoffs have begun in the United States as well. Areas such as compliance, risk management, and overlapping technology functions are reportedly being targeted for staff reductions. These measures reflect Citi’s determination to exert more direct control over its units, aiming to enhance profitability and increase its share price.
In the face of sweeping changes at Citigroup, the restructuring, characterized as the most extensive in nearly two decades, is part of Citi’s global efforts to streamline its operations and bolster its financial performance. As the situation unfolds, employees, stakeholders, and industry observers will be closely monitoring developments and outcomes.
