Citigroup to shed up to 400 London jobs

by Gill Montia

Story link: Citigroup to shed up to 400 London jobs

Citigroup is shedding between 300 and 400 London-based jobs, as part of a global redundancy programme that will see the world’s largest bank reduce staff numbers by 4,200 in total.

Last month the bank recorded a $9.83 billion net loss for the fourth-quarter of 2007, caused by an $18.1 billion exposure to bad mortgage debt.

The bank employs 11,000 at its Canary Wharf offices, where up to 150 fixed-income traders are expected to be made redundant from its investment banking division.

Job losses are also expected in equity research, wealth management and consumer banking.

The move increases the number of jobs cut by London investment banks as a result of the US sub-prime mortgage crisis to an estimated 1,000.

It is rumoured that Bank of America, which like Citibank has recorded multibillion-dollar writedowns relating to the US sub-prime mortgage crisis, will be announcing job cuts shortly.

In a knock-on effect, some accounting and law firms are expected to freeze recruitment of junior staff this year.

The Centre for Economics and Business Research, the independent research consultancy, has increased its October 2007 forecast for City job losses by 20%. It is now predicting that around 8,000 jobs will be lost during 2008.