Citigroup Warns UK Employees of Possible Redundancies Amidst Restructuring
Citigroup has recently issued a memo to its employees based in Britain, warning them of potential redundancies as the bank proceeds with a wide-ranging reorganisation. The move, which could impact hundreds of jobs in the country, comes as Citigroup enters the second phase of its plans to streamline its banking structure. The bank, which currently employs around 16,000 people in the UK, stated that it would introduce a consultation process to gather feedback from employees.
In the memo seen by Reuters, James Bardrick, UK Citi country officer, stated, “We anticipate that the reviews may lead to a reduction in roles in some parts of the business, and changes to some other roles. In some cases, colleagues may be placed at risk of redundancy.” However, Citigroup did not disclose the exact number of jobs that could be eliminated.
Citigroup assured its employees that it would adhere to all legal and regulatory requirements and provide support during this period of change. “As we take the necessary next steps to align our organization model with our strategy, we’re committed to following all legal and regulatory requirements and, importantly, supporting our colleagues through these changes,” said a Citi spokesperson.
This announcement comes after Citigroup CEO Jane Fraser revealed earlier this month that the bank would streamline its management structure and reduce its workforce. The reorganisation involves having its five divisions report directly to the CEO and eliminating regional roles outside of North America.
Acknowledging the uncertainty that employees might be feeling, Bardrick added, “Change isn’t easy, and we recognize the uncertainty that many of our colleagues are experiencing. We are moving at pace to provide clarity while following our processes and allowing for needed input from team leaders.”
Details regarding the specific areas of Citigroup’s UK operations that will be affected by the potential layoffs remain undisclosed. In accordance with local regulations, the bank is required to consult with employees if there is a possibility of more than 20 redundancies.
Citigroup plans to initiate a collective consultation process with the London Consultation Forum (LCF) in the coming weeks. Additionally, workers based in Belfast will have the opportunity to elect representatives as part of the consultation process. The bank also intends to conduct individual consultations with employees at risk of redundancy.
According to an internal memo, Kristine Braden, CEO of Citibank Europe, is departing the company after 25 years as part of the organisational change. CEO Jane Fraser described the restructuring as the bank’s most significant in nearly two decades, aiming to gain more direct control over its units and enhance profitability and share price.
Meanwhile, in the United States, Citigroup has initiated discussions with employees regarding potential layoffs, with support staff in compliance and risk management among the targeted areas. Technology staff working on overlapping functions are also at risk of redundancy.
Fraser addressed these changes during an industry conference on September 13th, stating, “We have taken hard, consequential, tough decisions here… It’s going to make some of our people very uncomfortable. I am absolutely fine with that. I am confident that our strongest performers will be fully supportive of these moves.”
More detail via The Star here… ( Image via The Star )