The impact of Citigroup’s massive staff restructuring hit the London legal team last week, with the announcement of a wholesale review of the in-house function.
An email was sent to all London legal employees detailing the investment bank’s review of its legal department.
The email, which was sent last Thursday (12 April), explained that the review will help to decide which positions are appropriate for relocation to cheaper jurisdictions such as Poland. Citigroup spokesman Rob McIvor confirmed that the review began last Thursday (12 April) and that a completion date has not been scheduled.
McIvor said: “A review of certain departments, such as legal services, trading and documentation, has begun. There’s no fixed finish date for the review; we cannot say at this stage when it will be complete.” Last Wednesday (11 April) Citigroup announced that it will be cutting more than 17,000 jobs globally after chief operating officer (COO) Bob Druskin completed a three-month structural costs review.
It has been reported that the majority of cuts will be in the regional headquarters, London and Hong Kong, and mainly in the legal, finance and HR departments.
The number of employees who will be relocated, according to another source, is expected to be around 7,500 across these departments. This figure, however, was not confirmed in the email.
The number of jobs to be relocated in the legal department has not yet been announced to the bank’s employees.
Druskin’s costs review stated that resources would be moved from regional headquarters in order to cut back on layers of management and to “move authority and resource closer to the client”.
A shared services initiative will lead to job losses for senior staff in London, as banking and markets and the consumer business are combined.