Citigroup Layoffs Roundup
By BankersBall on Nov 26, 2007 in Cube Life, Job Hunting, Layoffs
First there were numbers, then any mention of numbers were deemed “not factual.” We look for the story amid the speculation…
CNBC was the first out of the gate with news that big layoffs were in store for the bloated bank; here’s the “Massive Layoffs Coming at Citi” video, which was actually one of at least four videos that the network issued yesterday on the topic. If you want to punish yourself, you can watch them here: here, here and here. CNBC earlier said that layoffs could hit as many as 45,000 workers (Citi has ~320,000 employees worldwide), then seemed to back off the number after Citi came out with a statement, which was as follows:
“Our business heads are planning ways in which we can be more efficient and cost-effective to position our businesses in line with economic realities … Any reports on specific numbers are not factual”, (various Citi spokespeople)
While most coverage was heavy on the “cost-cutting” language and slim on details (besides CNBC of course), the Telegraph reported that Citi was prepared to axe “tens of thousands of jobs as it aims to trim its cost base.” The Telegraph also said that the cuts will be broad based, and are “thought to be related not just to fixed income and other sub-prime related areas, but across the length and breadth of the bank … It is thought that cuts could begin to be made as early as the new year.” (emphasis added). No sources were cited.
C dropped below $30 for the first time in five years. And, one more thing: there’s news late this eve that Citi’s selling a $7.5BN piece of itself to the Abu Dhabi Investment Authority. Acting Citi CEO Win Bischoff said that the bounty would “allow Citi to pursue attractive opportunities to grow its business.”
On Nov 27, 2007, Nancy said:
Today’s news is bad, too. I hate to see they buyout of Citigroup by Abu Dhabi, if that’s what’s being proposed. I’m hopeful that Citibank’s change of leadership will lead to new practices. The NewsVisual article on Citigroup gives one hope for a turnaround, since it shows that Robert Rubin, the interim leader, has experience in both the private and public sectors. So it would be hard to replace him.
On Dec 22, 2007, Ex-Citigroup Consumer Lending Group Employee said:
Citigroup will layoff between 50,000-70,000 employees state-side. They will continue to grow it’s employee base overseas (particularly in India). Pandit is the best man for the job. His “newness” will allow him to dispassionately make the job cuts while he shores up Citi’s liquidity problems and, hopefully, jettison underperforming units (i.e., credit cards, retail branches).
I believe that he has 60 days (at best) to earn the title of serious agent-of-change guy. He’s a refreshing change from Chuck Prince’ who had no leadership skills
On Dec 30, 2007, Hope said:
What will happen to the newly formed… Citi Residential Lending arm?
On Jan 29, 2008, Concerned in Chicago said:
The cuts have begun. Mid-level managmeent in Illinios received notices, exit packages and some demotions last week. Notifications were given Tuesday, effective Friday. Hold on to your hats, it’s going to be a very bumpy ride for Citi and it’s employees. Many more to come.
On Feb 9, 2008, chicago girl said:
HEY Concerned…. has anything been mentioned about the servicing arm at citi residential?
On Mar 26, 2008, Some guy said: said:
Looks like Citi will be losing more money, not sure how much, but could be in the billions!Citi is headed for the tank, and the flushing has begun.
On Apr 3, 2008, Daniel said:
Citi is not heading for the tank. Not sure if you guys noticed, but they were one of the banks listed when the Federal Reserve offered up 200B in backup/bailout in USD. The USD will do a true-blue tank long before Citi does. Simple fact is, the bank tycoons control the fed, the fed prints the money.
The good news, is that Citi’s management is aware it’s overweight, and is trying to trim.
The bad news is that their idea of trimming is equivalent to taking liposuction to itself - it’s incredibly unhealthy in the short term because of it’s lack of insight; cutting not just, and not enough fat - and because people are panicking because they’re not sure if they’ll be cut. Classic 1970’s management mistake.
Regards.
On May 23, 2008, Chicago said:
Citi Residential Lending is being closed. No ETA but soon.
On Jun 18, 2008, Hope said:
*** well I been reading how a ton of high profile Ex have been jumping ship.** Either they are running for cover and Citi is using a vacuum to get the people out of there. I still think they are taking too much foreign money. But we shall see.
On Jun 18, 2008, Hope said:
They should close citi residential that was a bad purchase anyway.. I was wondering what there take on it was going to be.