Citigroup has begun consulting on potential cutbacks to its British operations that could lead to hundreds of jobs being axed in the latest blow to the City’s financial services sector.

The latest round of job cuts in the City is part of the current 'pandemic', as described by the Ernst & Young Item Club, which predicts another 500,000 people face redundancy during the recession.

Executives at Citigroup informed staff last week that the bank is looking at costsavings across its equities and investment banking divisions. If the bank follows competitors in axing about 10% of its headcount in London, it would mean as many as 1,100 people face possible redundancy. Citigroup declined to comment this weekend.

Thousands of jobs are disappearing in the City, led by the collapse of Lehman Brothers, which lost 2,500 staff from its Canary Wharf office in September.

Sunday Telegraph