Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Citi puts over a thousand British banking jobs at risk

by January 13, 2024
January 13, 2024
Citi puts over a thousand British banking jobs at risk

More than 1,000 British jobs are under threat at Citigroup as the American bank announced it would cut 20,000 staff worldwide.

Citi, one of the biggest banks in the world, set out plans for a major job-cutting plan after posting its worst quarter in 15 years.

The bank reported a quarterly loss of $1.8 billion in the three months to the end December on the back of a costly withdrawal from Russia, the devaluation of the Argentinian peso and expenses associated with the depositor lifeboat scheme after the collapse last year of Silicon Valley Bank (SVB).

Jane Fraser, Citi’s chief executive, called it a “very disappointing” quarter, but added that she was pleased with progress on simplifying the business and executing on strategy.

Citi employs 239,000 people worldwide, including 16,000 in the UK. Of those, 11,500 are in London, 4,000 in Belfast, 400 in Edinburgh and 100 in Jersey. The job losses are pencilled in for the next two years and follow the loss of 13,000 roles over the past six months.

The UK is the bank’s second biggest country for operations after the US. If it shoulders a proportionate share of the proposed job cuts, about 1,300 roles could go. Sources cautioned against a direct read-across, however.

In the quarter, Citi reported a poor performance from its fixed income operations, offset by “decent” results in equities. Investment banking revenue continued to be weak while the wealth management division “isn’t where it needs to be”, Fraser said.

Provisions for expected defaults on loans were $1.99 billion in the quarter, up by 69 per cent.

Like other banks, Citi is being called upon to support the Federal Deposit Insurance Corporation after the failure of SVB and Signature Bank last year. It set aside $1.7 billion for this.

The wind-down from Russia cost $500 million while devaluation of the peso cost $880 million. The restructuring and simplifying of the bank cost $70 million in the quarter.

For the full 2023 year, Citi reported net income of $9.2 billion, down from $14.8 billion in 2022.

Fraser, who is British and previously worked at Goldman Sachs and McKinsey, first signalled heavy job losses in September when she launched a wide-ranging plan to reduce bureaucracy within the bank. At the time she conceded the project would make some staff “very uncomfortable”. It later emerged that she planned to trim five layers of management, from thirteen to eight.

“Given how far we are down the path of our simplification … 2024 will be a turning point as we’ll be able to completely focus on the performance of our five businesses and our transformation,” she said on Friday.

Citi was once America’s biggest bank but was badly holed during the banking crisis after taking on huge exposure to subprime mortgages. It received billions in bail-out investment from the US government.

Read more:
Citi puts over a thousand British banking jobs at risk

0
FacebookTwitterGoogle +Pinterest
previous post
EBay fined $3m over ‘criminal’ harassment of bloggers
next post
Week Ahead: NIFTY In Uncharted Territory; Adopt This Simple Approach Towards Markets

You may also like

HMRC probes nearly 800 major UK firms over...

August 27, 2024

Why carbon offsetting is crucial for the future...

June 12, 2023

Brewdog to shut six bars as its CEO...

September 1, 2022

Radical transformation planned for HSBC skyscraper in Canary...

July 18, 2024

Jonathan Reynolds appointed as new business minister amid...

July 5, 2024

Crowdfunding specialists appoint X Factor producer as new...

March 20, 2023

Germany tips into recession with analysts warning economy...

May 25, 2023

Tips for Protecting Your Ageing Parents

October 28, 2022

Vital Skills that Startup CEOs Need, Which Multinational...

January 28, 2025

Rachel Reeves rules out chlorinated chicken ahead of...

April 24, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved