Citigroup's UK staff braced for job losses

Apr 18 2008

Citigroup will post its latest company figures today amid concern that the US banking giant is to announce jobs cuts that could affect staff in the UK.

In an interview with the Financial Times ahead of its first quarter results, Citi’s chief executive Vikram Pandit said it was feasible that the group could cut its cost base by up to 20%.

Despite singling out information technology and operations for reductions, the comments will heighten concern that some of Citigroup’s 10,000-plus UK workforce could be affected.

It follow news that investment bank Merrill Lynch is to shed some 4,000 staff in a bid to save hundreds of millions of dollars a year.

Analysts have suggested that Citigroup could reveal a large loss in the first quarter figures released in New York tomorrow.

In the FT interview, Mr Pandit said: “It is clearly feasible for us to take 10, 15, 20 per cent off our cost base, especially in information technology and operations.”

Citigroup, the world’s biggest bank, has a global workforce of around 370,000. In the UK alone some 11,000 people are employed by the company, with an estimated 8,000 working in the City.

A spokesman for Citibank’s UK operations said it would be “inappropriate to comment” on today’s announcement.