Citigroup Axes Jobs As Sub Prime Business Declines

Fri, 23 May 2008

Citigroup, the world's largest bank, is to cut around 670 UK jobs after it announced the closure of two of its sub-prime lending arms.

On Wednesday the American bank announced it was planning to shut down Future Mortgages, its mortgage operation, and CitiFinancial, its unsecured loans business .

Roughly 400 jobs are set to be lost from the closure of its Doxford call centre operation near Sunderland, and 300 through the closure of a chain of CitiFinancial branches across the UK .

The Sunderland operation is due to shutdown by summer 2009, while the 49 other branches are likely to close over the next few months.

The bank has entered into consultation with affected members of staff, with the possbility of some being offered jobs elsewhere in the group.

Its 92,000 mostly sub-prime customers - 26,000 with Future Mortgages and 66,000 with CitiFinancial - will continue to be serviced by other parts of Citigroup on the same terms.

Bert Pijls, business manager for Citigroup’s British consumer business, said that following a strategic review, the two operations had not been identified as areas for future growth. Citigroup said it would instead focus its efforts through its Citi and Egg brands .

The banking group has been one of the worst-affected companies by the global sub-prime lending crisis, suffering a series of multi-billion-dollar write-down on risky investments .

Last month, Citigroup announced plans to axe at least 9,000 jobs from its 370,000 global workforce.
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