Spate of 3 layoffs in 6 months lead to low morale among Citi Singapore staff

SINGAPORE: The ongoing restructuring efforts by US banking giant Citigroup have left employees in its Singapore branch reeling from repeated rounds of layoffs. Since the announcement of a major reorganization in September last year, Citigroup Singapore has witnessed three rounds of job cuts within six months, leaving a trail of uncertainty and plunging morale among its workforce.

Mark (not his real name), a former employee from the wealth management department, told CNA that he was among those laid off in March this year, a move he indicated was jarring despite having anticipated potential cuts. “When I received the layoff letter, my last working day was just a few days away,” Mark recounted, “Some colleagues received the layoff notice while they were on vacation.”

According to Mark, the layoffs were extensive, affecting most of the retail banking staff. Those who retained their positions faced significant changes in their job roles and increased workloads. His team, which originally had over ten members, saw a 40% reduction, leaving the remaining employees struggling to cope with the additional responsibilities.

Finding new employment has been challenging for the laid-off employees. Mark noted that most of his colleagues from the March layoffs are still job hunting, while some who were let go in January have secured new roles. The affected employees were not given the chance to seek other positions within Citigroup.

Citigroup’s CEO, Jane Fraser, confirmed in April that the bank had cut about 7,000 jobs globally, surpassing the initial estimate of 5,000. A report from January indicated that Citibank plans to eliminate 20,000 jobs over the next two years, aiming to save US$2.5 billion (about S$3.3565 billion) in long-term costs.

Current employees are also feeling the strain. Amy (not her real name), who works in Citi’s global consumer banking department in Singapore, described a pervasive sense of instability and declining morale. “They haven’t officially announced the number of layoffs,” she told CNA, “I’ve heard there are more layoffs, but nothing official.”

The uncertainty is causing employees to question the bank’s direction and the effectiveness of the job cuts. Some regional and country departments have merged, such as the International Personal Banking Department and the Global Consumer Banking Department, leading to further confusion and concern about job security.

The ongoing restructuring has prompted some employees to resign voluntarily. Sarah (not her real name), who recently left Citigroup for a local bank, expressed her disillusionment with the company’s future. “It is really sad to see some talented staff being made redundant,” she lamented.

Citigroup Singapore, which employs between 8,000 and 8,500 full-time and contract staff, continues to grapple with the fallout from these sweeping changes. As the bank moves forward with its restructuring plans, the long-term impact on its employees and operations remains to be seen.

TISG/