Consolidating IT functions, Citizens trims 100 R.I. jobs

CITIZENS BANK expects to trim roughly 100 Rhode Island jobs in a consolidation of its IT division. It expects that IBM, which will take over some of the functions previously done by Citizens' employees, to offer jobs to bank workers whose positions are being eliminated.
CITIZENS BANK expects to trim roughly 100 Rhode Island jobs in a consolidation of its IT division. It expects that IBM, which will take over some of the functions previously done by Citizens' employees, to offer jobs to bank workers whose positions are being eliminated.

PROVIDENCE – Citizens Financial Group Inc. has consolidated its IT division, which has resulted in the net loss of about 100 Rhode Island jobs.

The Providence-based bank confirmed the cuts on Thursday, saying the restructuring is a product of the company’s consolidation of IT vendors. The bank said in a statement that the decision is a part of an effort to manage costs and improve effectiveness for customers.

“We have entered into a strategic partnership with IBM to consolidate our IT infrastructure services,” according to the statement. “As we transition from four vendors to one, and also ask IBM to do some work that previously was handled internally, some of the colleagues affected by these changes are being offered comparable positions with IBM.”

The bank wouldn’t disclose the total number of jobs lost in the transition, which started a couple weeks ago, but did confirm a net loss of 100.

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The bank said those who aren’t being offered positions with IBM, “are receiving priority consideration for open positions as we continue to hire in other parts of the bank,” according to the statement.

Citizens Financial Group Inc., with about $136.5 billion in assets, reported last month a 25.9 percent increase in profit for its first quarter ended March 31. The bank has its initial public offering last year and Royal Bank of Scotland PLC has reduced its ownership level to 41 percent, according to a statement last month.

Last year, Citizens employed at least 5,250 people locally, according to Providence Business News research. The bank says it employs a total of 17,800 people, according to its website, and in its statement said it would add more jobs locally.

“We have added a significant number of colleagues to other parts of our operations in Rhode Island and also will be creating new positions to help us manage the IBM relationship,” the bank said.

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