Citi started another consultation period in London. People are worried about bonuses
It's late in London, but sources at Citi say that as the bank becomes the latest in a long line of US houses to cut jobs in 2023, letters have gone out informing UK staff that a consultation period has begun.
In a memo sent this evening and seen by eFinancialCareers, James Bardrick, Citi's country officer for the UK, said that a collective consultation process has begun today for the management layers below those that were impacted last week.
Citi is reducing its layers of management from 13 to nine. Insiders say last week's changes impacted individuals at level two, one level below Jane Fraser and the executive management team. The next changes are expected to impact levels three and four.
In the UK, employers are obliged to engage in a consultation period 30 days before they make 20 to 99 redundancies, or 45 days before they make more than 100 redundancies. The implication is therefore that Citi's next cuts will take place either just after Christmas or in early January. However, not everyone put at risk will lose their jobs.
Sources at the bank say this seems carefully timed to coincide with bonuses, which aren't paid if individuals are either under notice or have been dismissed.
"Bonuses are usually announced on the third Wednesday of January and paid the last day of January," says one. "They're working down through the layers before then."
Writing in the memo, Bardrick says: I know this is an uncertain time and I thank you for your patience. It is important that we implement these changes in a thoughtful and structured way." A Citi spokesperson said: “We are updating colleagues on our proposed next steps to align our structure with our strategy and we are consulting with the London Consultation Forum. Some roles may change, while others will stay the same.”
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