Citigroup plans to make job cuts at its Bermuda operations, where it employs some 230 people, The Royal Gazette has learned.

Sources have revealed to this newspaper that some staff will definitely go, without saying how many, or when the cuts will take place. Citigroup's Bermuda units are Citi Hedge Fund Services and Citigroup Fund Services (Bermuda).

It is understood that there are no plans to close down Citigroup's entire Bermuda operation, however.

Hedge funds and mutual funds have been hard hit by the turmoil on the financial markets in recent months, as nervous investors have pulled out their money and asset values have plummeted. The global banking giant greatly increased its presence here with the purchase of the Bisys Group for $1.7 billion in May 2007.

The company announced last November that it was aiming to cut 52,000 jobs - one seventh of its worldwide workforce.

Citigroup's New York-based spokesman Nina Das said yesterday: "We are not breaking down the job cuts by location."