NEW YORK: Some Citigroup employees who are being laid off this week in New York, part of one of the biggest job reductions at a bank since the financial crisis, are expected to be paid salaries through April, two sources with knowledge of the matter said.
In meetings with managers and human resources representatives this week, employees affected by the job cuts were given more details about the exit process, according to the two sources who declined to be identified discussing personnel matters. The arrangements may vary depending on individual circumstances.
Citigroup declined to comment.
Feb 1 will mark the beginning of a 90-day notice period required in New York state, the two sources said.
Managers can determine whether employees who are being laid off can work through February and maintain access to the bank’s equipment and systems.
Pay and benefits will be maintained through March and April for New York-based staff, the sources said, but access to company systems will be cut off during those months, one of the sources said. Staffers can apply for other jobs at the bank during the 90-day period.
Bonus payments for 2023 will be combined with severance packages, the sources said.
Earlier this month, the third-largest US bank announced plans to reduce its headcount by 20,000 people over the next two years.
CEO Jane Fraser told managers in a call last week that about 5,000 employees would be let go as part of the reorganisation, about 5,000 from divestitures and 10,000 in technology and operations, according to a source briefed on the call.