Citigroup is set to roll out job cuts in its UK operations next week as the Wall Street bank simplifies its business under a sweeping reorganisation by chief executive Jane Fraser.
The US bank told UK staff that it is entering a consultation process under the second phase of its changes, which could lead to roles being cut, according to people familiar with the matter and a memo seen by Financial News.
The move comes a week after Fraser unveiled a new structure that will see the closure of its institutional client group, five new business divisions created and the elimination of top regional roles. The bank warned when announcing the new structure on 13 September that jobs would be lost during its biggest overhaul in 20 years.
Citi employs around 16,000 people in the UK and the cuts in the country follow around 50 redundancies in its corporate and investment bank earlier this year. Dealmakers are expecting deeper cuts this time around, according to conversations with bankers.
READ Citigroup strips out management layers, prepares for job cuts in Jane Fraser shake-up
James Bardrick, Citigroup’s UK chief executive, told staff in a memo seen by FN 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”.
Citigroup was contacted for comment. Reuters reported the memo earlier.
The reorganisation saw European chief executive, David Livingstone, moved to head up a new division called ‘clients’. Regional chief executive roles will be cut under the new structure, and Fraser said that it would also look to eliminate many co-head roles.
In the immediate aftermath of the announcement, Manolo Falco, the London-based co-head of Citigroup’s investment bank, was transferred to a role dealing with its biggest clients. Tyler Dickson was promoted to sole head of its investment banking unit.
“Change isn’t easy, and we recognise 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,” wrote Bardrick in the memo.
Bankers have been braced for further changes after the reorganisation, which is expected to hit management structures within its investment bank.
“We have taken hard, consequential, tough decisions here,” Fraser told an industry conference on 13 September. “They are not going to be universally popular within our banks. 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.”
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