Fears for HR jobs as Citigroup centralises function in wake of ‘credit crunch’

Moves by one of the world’s largest banks to centralise its HR function has sparked fears that other banks may follow suit, leading to HR job losses.

Citigroup revealed it was in the process of centralising its global functions, including HR.

A spokesman for Citigroup refused to confirm or deny that HR jobs would be affected by the shake-up. “A review is still ongoing,” he said.

The HR function would be organised on a global basis, he added, with the aim of aligning business strategy and human capital to provide “consistent and effective HR service delivery at optimum cost”.

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Citigroup is one of a number of big US banks to be hit by the sub-prime ‘credit crunch’. Last year the company announced it would axe 15,000 jobs as part of a restructure, with the aim of saving £510m.

The City HR Association, a group representing HR professionals in the financial services sector, refused to comment on the activities of individual companies. However, director Andrea Eccles said: “We do recognise the need for organisations to structure their business to reflect the reality of their commercial situation.”