The axe falls: A Citigroup worker entering the firm’s office at 9 Church Street, yesterday. The company laid off between 20 and 30 local staff yesterday, sources told us. *Photo by Mark Kennedy
Citigroup began layoffs at its Bermuda offices yesterday morning.
Up to 30 of the 230 local staff positions in the Bermuda office of the financial services giant were slashed, sources told us.
At around 11am yesterday, management began informing employees that they had been made redundant. Some were asked to pack up their things and leave the office immediately, another source said.
Redundant workers will receive four months' pay as severance, one of our sources told us.
VSB Radio reported that a worker made redundant had called the station soon after finding out the news.
Some staff were seen leaving the building with tears in their eyes, VSB reported.
Citi joins a growing list of firms that have laid people off this year.
On January 11, the Fairmont Southampton hotel laid off 35 staff. Six days later, accountancy firm Ernst & Young let approximately 15 staff go.
Earlier this month, Butterfield Fulcrum Group, XL Capital, Goslings Co., Swiss Re, and Scottish Re also cut staff.
It's unclear precisely how many people were laid off from Citi's two Bermuda units - CITI Hedge Fund Services Ltd and Citigroup Fund Services (Bermuda) Ltd, as management was not talking yesterday.
Part of global layoffs
Calls made to management at CITI Hedge Fund Services office were not returned as of press time.
Nina Das, Citi's spokesperson in New York, refused to specify how many were made redundant here, saying only: "We're really not breaking it down by a location basis. That's our position.
"We have targeted layoffs globally and (the Bermuda layoffs) are part of that," she said.
The layoffs come amid continuing financial troubles for the firm.
Hedge funds have been hit hard by the ongoing economic crisis, and Citi's layoffs are part of a cost cutting measure.
In November, the company said it would be reducing its global staff pool by 52,000, down to about 300,000 worldwide.
Those cuts represent a seven per cent reduction in Citi's overall workforce.
Citi's share value was up more than 12 per cent on the New York Stock Exchange yesterday, and hovered around $2.40 per share.
