Another Massive Bank Now Lays Off 10% of Employees

February 8, 2024

Updated on February 9, 2024

Another massive bank now lays off 10% of employees division’s new chief looks for ways to boost the returns, sources report.

Citigroup is weighing a move to cut 51 roles across its wealth business in London, reports Bloomberg.

The cuts would affect about 10% of the unit’s 485 staffers in the UK and the bulk of the roles being eliminated would be from the assistant vice president to director level, according to a memo to staff seen by Bloomberg.

They would include 21 roles in the firm’s private bank division, the memo shows.

“The wealth business is continuing to identify areas to improve efficiency through structural changes and cost base reductions,” Valentin Valderrabano, chief operating officer for the global wealth business, said in the memo, noting the company had begun a process with its London Consultation Forum.

“The LCF representatives will engage with affected employees as soon as we are in a position to do so.”

Chief Executive Officer Jane Fraser has said expanding the firm’s wealth management operations will be a key tenet of Citigroup’s strategy going forward and last year hired Bank of America Corp.’s Andy Sieg to reshape the division.

In his prior role, Sieg was overseeing a team of more than 25,000 people providing investment and wealth services across the US.

“We fully recognize that this business isn’t where it needs to be,” Fraser told investors on a conference call last month.

“Andy is off to a fast start. In addition to resetting the expense base and ensuring the right utilization of our balance sheet, he is tightening our focus to build fee-based revenue streams.”

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Also Read: A US Bank is Now Denying Customers Access to Money

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A bank now announces massive layoffs and branch closures, part of a plan to cut costs and save at least £200m, source report.

Virgin Money has now warned of more upcoming job losses as it sets to close another string of bank branches to cut costs.

Britain’s sixth-biggest lender, which pays Sir Richard Branson to use the Virgin name, said it cut 150 full-time roles in its first quarter and expects “further reductions in [full-time employees] during the year” as it races to save £200m in yearly expenses, reports Yahoo Finance.

The bank had hoped to capitalize on the Virgin brand and snap market share from bigger rivals such as Lloyds Banking Group and NatWest by being “not a very banky brand”, with its branches known to host yoga mornings and music concerts.

However, it’s non-traditional events have faltered, causing the bank to struggle to compete with the much larger lenders.

Virgin Money told investors on Tuesday that as well as job cuts over its first quarter it has closed 39 branches and reduced its office footprint by 35pc.

The company did not however disclose further details about the job cuts.

The bank layoffs are not uncommon.

A number of companies in the finance industry have announced layoffs this year in the face of rising pressure to strip out costs, such as by closing bank branches and moving customers online.

Barclays, Lloyds Banking Group and Metro Bank have all unveiled plans to cut jobs amid increased automation in banking.

And in the states, banks such as Trustco, Bank of America, Wells Fargo, Fifth Third Bank, and PNCBank have already made headlines for their workforce reductions.

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Also Read: A Massive US Bank is Now Closing Credit Cards

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