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Citigroup (C) Warns of Potential Layoffs in Its UK Business
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Citigroup Inc. (C - Free Report) alerted employees in the U.K. of probable redundancies as part of the bank’s previously announced reorganization efforts. The news was first reported by Reuters that cited a memo.
Citigroup’s U.K. business has 16,000 employees but it was unclear which areas of the bank’s U.K. business will be affected by the job cuts. Markedly, as many as hundreds of roles are expected to be affected. The company is likely to set up a consultation process, whereby employees can give their feedback. Per local rules, organizations must consult with staff when there are more than 20 redundancies.
The move comes at the heels of Citigroup CEO Jane Fraser’s effort to revamp the company’s corporate structure. Particularly, earlier this month, C announced an organizational restructuring to simplify and eliminate extra management layers.
The new model removes management layers in Personal Banking & Wealth Management, and the Institutional Clients Group. The bank also reduces existing regional layers in the Asia Pacific, Europe, Middle East and Africa, and Latin America.
Specifically, the leaders of each of C’s five main businesses — Banking, Markets, Services, Global Wealth Management and U.S. Personal Banking — will report directly to CEO Jane Fraser and be members of the executive management team.
The company also consolidates the leadership of the firm’s international business under Ernesto Torres Cantú, head of international business. Also, the Banking and International segments will share a common management team to facilitate better connectivity for clients.
Over the past six months, shares of Citigroup have declined 8.7% against the industry’s rise of 2.7%.
Similar to Citigroup, Wells Fargo & Company (WFC - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) have been reducing their workforces.
At a recent investor conference, Wells Fargo’s chief financial officer, Mike Santomassimo, noted that the company is eyeing opportunities to cut down expenses by reducing its real estate footprint and headcount.
Since third-quarter 2020, WFC has cut almost 40,000 jobs. Santomassimo noted, “We had too much real estate before Covid, and so we’ve been methodically working through that portfolio over the last few years.”
GS is planning another wave of job cuts that could take place as soon as next month, per a Financial Times article. This is part of its yearly practice of letting go of those employees deemed the lowest performers.
The expected move usually affects 1-5% of GS’s total staff. The company is aiming to cut jobs at the lower end of the range, primarily in its main business divisions like investment banking and trading.
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Citigroup (C) Warns of Potential Layoffs in Its UK Business
Citigroup Inc. (C - Free Report) alerted employees in the U.K. of probable redundancies as part of the bank’s previously announced reorganization efforts. The news was first reported by Reuters that cited a memo.
Citigroup’s U.K. business has 16,000 employees but it was unclear which areas of the bank’s U.K. business will be affected by the job cuts. Markedly, as many as hundreds of roles are expected to be affected. The company is likely to set up a consultation process, whereby employees can give their feedback. Per local rules, organizations must consult with staff when there are more than 20 redundancies.
The move comes at the heels of Citigroup CEO Jane Fraser’s effort to revamp the company’s corporate structure. Particularly, earlier this month, C announced an organizational restructuring to simplify and eliminate extra management layers.
The new model removes management layers in Personal Banking & Wealth Management, and the Institutional Clients Group. The bank also reduces existing regional layers in the Asia Pacific, Europe, Middle East and Africa, and Latin America.
Specifically, the leaders of each of C’s five main businesses — Banking, Markets, Services, Global Wealth Management and U.S. Personal Banking — will report directly to CEO Jane Fraser and be members of the executive management team.
The company also consolidates the leadership of the firm’s international business under Ernesto Torres Cantú, head of international business. Also, the Banking and International segments will share a common management team to facilitate better connectivity for clients.
Over the past six months, shares of Citigroup have declined 8.7% against the industry’s rise of 2.7%.
Image Source: Zacks Investment Research
Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar to Citigroup, Wells Fargo & Company (WFC - Free Report) and The Goldman Sachs Group, Inc. (GS - Free Report) have been reducing their workforces.
At a recent investor conference, Wells Fargo’s chief financial officer, Mike Santomassimo, noted that the company is eyeing opportunities to cut down expenses by reducing its real estate footprint and headcount.
Since third-quarter 2020, WFC has cut almost 40,000 jobs. Santomassimo noted, “We had too much real estate before Covid, and so we’ve been methodically working through that portfolio over the last few years.”
GS is planning another wave of job cuts that could take place as soon as next month, per a Financial Times article. This is part of its yearly practice of letting go of those employees deemed the lowest performers.
The expected move usually affects 1-5% of GS’s total staff. The company is aiming to cut jobs at the lower end of the range, primarily in its main business divisions like investment banking and trading.