Citigroup (C.N) has issued a warning to its employees based in the United Kingdom, signaling the possibility of job redundancies as part of the bank’s extensive restructuring efforts.
According to a memo obtained by Reuters on Friday, this move could potentially impact hundreds of jobs across the country.
With approximately 16,000 employees in the UK, Citigroup announced the initiation of phase two of its plan to streamline its banking operations.
As part of this phase, the bank intends to establish a consultation process that allows its employees to provide feedback on the restructuring.
James Bardrick, the UK Citi Country Officer, conveyed to employees in the memo, “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.”
The exact number of job cuts in Britain and Northern Ireland was not disclosed by the bank.
A spokesperson for Citigroup stated, “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.”
The banking industry had been anticipating changes following CEO Jane Fraser’s recent announcement that Citigroup, the third-largest U.S. bank, would eliminate a layer of management and reduce jobs.
This restructuring involves having all five divisions report directly to the CEO and eliminating regional roles outside North America.
In response to concerns, 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.”
The specific areas within Citigroup’s UK operations that will be affected by the job cuts remain undisclosed.
According to local regulations, organizations are required to consult with their employees when there is a possibility of more than 20 redundancies.
Citigroup stated that it will engage in discussions with the London Consultation Forum (LCF) in the coming weeks as part of a collective consultation process.
Furthermore, it will allow employees based in Belfast to elect representatives as part of this consultation process.
The bank also confirmed its commitment to consult with employees at risk of redundancy on an individual basis.
CEO Jane Fraser characterized these changes as Citigroup’s most significant reorganization in nearly two decades, aimed at gaining more direct control over its units and enhancing profitability and share price.
In the United States, Citigroup has recently initiated discussions with employees about potential layoffs, targeting support staff in compliance and risk management, among others.
Technology staff involved in overlapping functions are also reportedly at risk of job cuts.
In another development, Kristine Braden, the CEO of Citibank Europe, is leaving the company after serving for 25 years, as part of the organizational change, as revealed in an internal memo seen by Reuters.