Citi Firing 11,000

Tyler Durden's picture




 

Big news ahead of this Friday's NFP report:

  • CITI TO CUT OVER 11,000 JOBS, TAKE PRETAX CHARGE $1B IN 4Q

"Sandy's fault?" or better yet, "Vikram's fault." Or maybe the economy is collapsing despite all the propaganda one is spoonfed. Considering the recent termination of over 50,000 by UBS we think we know the answer. And while C stock may jump on the news, the end result is that New York and the US have both just lost 11,000 less key taxpayers most of whom are almost certainly in the $250,000+ bucket. That said we can't wait for the BLS to take this data as somehow beneficial for the unemployment rate.

Full release:

Citigroup today announced a series of repositioning actions that will further reduce expenses and improve efficiency across the company while maintaining Citi’s unique capabilities to serve clients, especially in the emerging markets. These actions will result in increased business efficiency, streamlined operations and an optimized consumer footprint across geographies.

Michael Corbat, Citi’s Chief Executive Officer, said, “These actions are logical next steps in Citi's transformation. While we are committed to-- and our strategy continues to leverage-- our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns. And we will further increase our operating efficiency by reducing excess capacity and expenses, whether they center on technology, real estate or simplifying our operations.”

Due to this repositioning, Citi expects to record pre-tax charges of approximately $1 billion in the fourth quarter of 2012 and approximately $100 million of related charges in the first half of 2013. Citi currently expects that the repositioning will generate $900 million of expense savings benefitting 2013 results and that the annual expense savings will exceed $1.1 billion annually beginning in 2014. Citi also expects the repositioning actions to have a negative impact on annual revenues of less than $300 million. These actions will result in a reduction of more than 11,000 positions.

Citi expects the repositioning activity to affect the following businesses and functions:

Institutional Clients Group (ICG): Approximately 25% of the announced fourth quarter repositioning charges are expected in Securities & Banking with another 10% in Transaction Services. The repositioning actions are expected to result in a reduction of approximately 1,900 positions, of which more than half are in the Operations & Technology functions that support the business. The actions are designed to streamline our client coverage model in Banking and improve overall productivity in our Markets business, especially in areas experiencing continued low profitability such as cash equities.

Global Consumer Banking (GCB): Approximately 35% of the fourth quarter repositioning charges are expected to be incurred in Global Consumer Banking, resulting in a reduction of approximately 6,200 positions, of which approximately 40% are in the Operations & Technology functions that support the business. As a result of the repositioning actions, Citi expects to either sell or significantly scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay.

Consistent with Citi’s strategy of focusing on the 150 cities that have the highest growth potential in consumer banking, Citi will optimize its branch footprint and further concentrate its presence in major metropolitan areas. The markets affected by the reductions include Brazil (14 branches), Hong Kong (7), Hungary (4), Korea (15), and the United States (44).

Citi will continue to invest in its franchises in these countries to serve its targeted consumer segments. After this repositioning, Citi will have more than 4,000 retail branches around the world and all of the aforementioned countries will continue to be served by our institutional businesses.

Citi Holdings: Citi Holdings is expected to eliminate approximately 350 positions and incur approximately 5% of the repositioning charges. Most of the repositioning charges are related to branch rationalization in Greece and Spain.

Corporate/Other: About 25% of the announced repositioning charges are expected to be incurred in Corporate/Other.

Operations & Technology: Citi’s Operations & Technology function is expected to achieve greater efficiency through increasing standardization and the use of automated processes; streamlining the organizational structure; and consolidating functions and moving certain positions to lower-cost locations. In addition, there will be a consolidation of certain locations in Citi’s real estate portfolio. In addition to the reductions in Operations & Technology positions that support the ICG and GCB businesses, these actions will result in the reduction of approximately 2,300 positions that support corporate services, real estate, and Citi Holdings.

Global Functions: Roughly 300 Global Functions positions will be eliminated as a result of efficiency savings.

"Citi has come a long way over the past several years. We have been consistently profitable; our capital strength is among the highest in the industry; and we have shed hundreds of billions in assets and businesses that are not core to our strategy. We will continue to seek ways to optimize the execution of our strategy to better serve our clients and deliver results for all of our stakeholders," concluded Mr. Corbat.

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Wed, 12/05/2012 - 10:07 | 3035247 holdbuysell
holdbuysell's picture

This will be a nice offset to any tax hikes Obama jams through. /sarc

Wed, 12/05/2012 - 10:09 | 3035254 bania
bania's picture

Tear.

Wed, 12/05/2012 - 10:14 | 3035259 GetZeeGold
GetZeeGold's picture

 

 

Tax revenue just took a major hit. Gonna need to find 11000 more rich people mucho pronto.

Wed, 12/05/2012 - 10:23 | 3035329 Xibalba
Xibalba's picture

. <------ my violin

Wed, 12/05/2012 - 10:36 | 3035384 El Viejo
El Viejo's picture

Some would consider me rich. I pay my taxes. I also served my country. I don't take bribes and think that those that do to become hyper-obscenely rich and powerful will get their just rewards. Play on mo ron.

Wed, 12/05/2012 - 10:43 | 3035422 aerojet
aerojet's picture

Congrats, you served those assholes.  What do you want for it since you called it out and all that?  I'm just stone-dead tired of all these veterans laying it on so thick.  It would have been better had you not served your country, sorry, but it is true and quite obvious.

Wed, 12/05/2012 - 10:56 | 3035451 El Viejo
El Viejo's picture

This country hasn't always been the cesspool that it is today. If the revolutionary soldiers had said I'm quitting cause I had to eat my shoes and there is snow on the ground and my feet are cold you would just be another british slave now and the cesspool would be much larger than it is.

Tell me, have you ever done anything for anyone other than yourself? If not then you are just another Darwinian jerk looking to enrich yourself.

Wed, 12/05/2012 - 11:10 | 3035560 Freddie
Freddie's picture

The Joint Cheifs and Pentagon are cowards supporting the muslim.  As long as people like Petraus get their muzzie whore spies. 

The Egyptians have more courage than Americans standing up to islamic terrorists that Obam/Saudi/Soros/Clinton install.

Wed, 12/05/2012 - 11:10 | 3035566 Mrmojorisin515
Mrmojorisin515's picture

what the hell are you talking about?

Wed, 12/05/2012 - 14:17 | 3036391 El Viejo
El Viejo's picture

In the slim chance you might be asking an honest question:

http://www.wickedlocal.com/concord/archive/x38162002/For-patriots-hunger...

Wed, 12/05/2012 - 11:24 | 3035622 Sudden Debt
Sudden Debt's picture

euuhhh.... Yes I'm a Darwinian :)

People are descendants from apes. And they became "Humans" after the Aliens had sex with those apes.

 

 

Wed, 12/05/2012 - 11:50 | 3035748 Larry Dallas
Larry Dallas's picture

+1000 to aerojet.


Most of these people serve their country because they have to. Meaning they were fuck ups in high school in the midwest and other fly-over states and had no other way to get any sort of career started.


That is why the morale is so low. John Kerry stated it so eloquently, to paraphrase get good grades and go to college, if you don't then you will go Iraq.

Wed, 12/05/2012 - 12:36 | 3035964 vato poco
vato poco's picture

Congrats to Larry, winner of "most pompous & patronizing comment of day" award. Despite what you learned at Teacher's knee (and lap), bud, growing up in what you sneer at as 'flyover country' is actually an advantage for most kids.

Tell you what, champ: I'll line up 100 midwest high-school fuckups from, say, Des Moines and Mankato and Cape Girardeau. You line up 100 HS fuckups from Newark, Miami, Baltimore, Oakland, and - say - Compton, and we'll have us an IQ and a "career" Olympics. I'll bet you **big** bucks your erudite sophisticated big-city kiddies would get their asses stomped into the dirt. You condescending asshole.

Wed, 12/05/2012 - 12:56 | 3036063 blunderdog
blunderdog's picture

+1 for having the balls to call a spade a fuckin' dirty-ass shovel.

Wed, 12/05/2012 - 12:31 | 3035935 kloot
kloot's picture

those assholes? US citizens or the 1 percent? from your tone it seems as if your refering to the 1 percent (whoever they are), which just shows your stupidity. Its the US citizens whom veterans have always fought for, and its the citizen responsibility to pursuade the 1 percent into making the decisions that are best for our country. Unfortunatly our citizens lack the courage to take a stand or are to ignorant (like your post) to challenge decision makers.

in addition to fighting for citizens, veterans faught and died for the men to thier left and right of them. you my friend would be neither, nobody would want to be in a fight next to you, coward.

if you dont believe me go download that coward app and see where it ranks you, my bet would be in the 99 percentile.

Wed, 12/05/2012 - 10:51 | 3035465 Stoploss
Stoploss's picture

Thanks for serving the ponzi. Your taxes don't amount to enough to support a 2x4 much less anything else.

Go back in your box.

Wed, 12/05/2012 - 11:19 | 3035605 SubjectivObject
SubjectivObject's picture

I appreciate you EV. 

The downvoting asshats behind the screen rate as trolls that want to keep us fighting amongst ourselves.  And the 0.1% love 'em for it.

Wed, 12/05/2012 - 11:24 | 3035625 SubjectivObject
SubjectivObject's picture

[ dp ]

Wed, 12/05/2012 - 10:17 | 3035298 LawsofPhysics
LawsofPhysics's picture

Not if these people become productive ditch diggers.  Sounds like a win-win to me.

Wed, 12/05/2012 - 10:23 | 3035324 Disenchanted
Disenchanted's picture

 

 

You dig the hole, I'll fill it in... ;p

Wed, 12/05/2012 - 10:31 | 3035364 John Law Lives
John Law Lives's picture

The world needs ditch diggers, too...

http://www.youtube.com/watch?v=eiRGRvE_Wqg

Wed, 12/05/2012 - 10:36 | 3035385 GetZeeGold
GetZeeGold's picture

 

 

All 11,000 were given a DVD of Caddyshack. None of them had ever seen it because it was made before any of them were born.

Wed, 12/05/2012 - 10:40 | 3035409 azzhatter
azzhatter's picture

looking for farm labor in California

Wed, 12/05/2012 - 14:32 | 3036450 vato poco
vato poco's picture

Try offering higher pay.

Wed, 12/05/2012 - 10:17 | 3035299 JPM Hater001
JPM Hater001's picture

I might go long Revolution this week.

Wed, 12/05/2012 - 10:08 | 3035248 Cursive
Cursive's picture

 

That said we can't wait for the BLS to take this data as somehow beneficial for the unemployment rate.

The "new businesses" created just went up 11,000.

 

Wed, 12/05/2012 - 10:12 | 3035272 fonzannoon
fonzannoon's picture

ZIRP has killed trading, especially in fixed income. No need for a lot of people and once you cut the fat that 85 bil a month will go a lot further amongst the few people left. It's a big club, and a lot of people at citi ain't in it.

Wed, 12/05/2012 - 10:36 | 3035382 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Michael Corbat, Citi’s Chief Executive Officer, said, “These actions are logical next steps in Citi's transformation..."

It's always logical when it comes to eliminating someone else's job.

Wed, 12/05/2012 - 11:55 | 3035764 JPM Hater001
JPM Hater001's picture

But it's always logical when it's a bankers.

-Upgrade 2.0.

Wed, 12/05/2012 - 10:09 | 3035250 GMadScientist
GMadScientist's picture

Please pick Vikram. Please pick Vikram. Please pick Vikram. Please pick Vikram. Please pick Vikram. Please pick Vikram.

"I don't always talk to bankers, but when I do....I ask for large fries."

Wed, 12/05/2012 - 10:08 | 3035251 rsnoble
rsnoble's picture

Isn't this bullish?

And it is good for the unemployment rate because employers will see a mass pool of psychotic skilled labor now available and immediately hire them.

Wed, 12/05/2012 - 10:08 | 3035253 Dr. Richard Head
Dr. Richard Head's picture

Nice knowing you CITI vultures.  Couldn't happen to a better group of non-productive fractional reserve money whore cunts.  Shit, I need some coffee.

Wed, 12/05/2012 - 10:09 | 3035255 EscapeKey
EscapeKey's picture

That's OK, McDonalds stand ready to hire all this exceptional talent.

Wed, 12/05/2012 - 10:13 | 3035280 HelluvaEngineer
HelluvaEngineer's picture

No thanks.  I really don't want these sociopaths pissing in my coffee.

Wed, 12/05/2012 - 10:26 | 3035344 Sudden Debt
Sudden Debt's picture

Noboy starts in the Coffee department at McDonalds...

First they start with mopping floors...

after a few years, after 3 promotions they can wash lettuce.

In the next 5 years they'll be on fries

then the grill... and 2 years later when they're 80 years old they'll retire...

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=7&cad=rja&ved=0CGQQtwIwBg&url=http%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3Dm7z0sOBPx3g&ei=u1i_UKKuLMSF4ASYyoGABA&usg=AFQjCNHxL3gntM4F_WjmtfHVrXbQ2MvG6A&sig2=7aIqHWUGsQ2E9uNXpdf32g

 

Wed, 12/05/2012 - 11:18 | 3035597 Sudden Debt
Sudden Debt's picture

Oh... I didn't know that sir.... here's the coffee you ordered...

 

Wed, 12/05/2012 - 10:10 | 3035261 kliguy38
kliguy38's picture

11,000 100K jobs lost and 11,000K 8 dollar Wally World Jobs added for Xmas.....watta bargain

Wed, 12/05/2012 - 10:12 | 3035273 GMadScientist
GMadScientist's picture

I'm pretty sure there aren't even 11M shitjobs to be found; take a look at Wally World's 10K for the deets.

 

Wed, 12/05/2012 - 10:16 | 3035294 GetZeeGold
GetZeeGold's picture

 

 

Might find some jobs in Mexico.....good thing we had the foresight not to put a fence there.

Wed, 12/05/2012 - 10:10 | 3035262 Disenchanted
Disenchanted's picture

 

 

 

Are employees in the F.I.R.E. sector makers or takers?

Wed, 12/05/2012 - 10:11 | 3035263 Seasmoke
Seasmoke's picture

Nice , it's going to be a good day !

Wed, 12/05/2012 - 10:11 | 3035264 kito
kito's picture

There’s going to be a huge shift in American society, American culture, in the places where one is going to get rich. The stock brokers are going to be driving taxis. The smart ones will learn to drive tractors so they can work for the smart farmers. The farmers are going to be driving Lamborghinis. I’m telling you.

--jim rogers

Wed, 12/05/2012 - 11:24 | 3035627 GeezerGeek
GeezerGeek's picture

Considering that Lamborghini started with a tractor factory after WW II, the quote may indicate that Jim Rogers knew of the history of Lamborghini. Many car manufacturers make other sorts of vehicles. Mercedes, for instance, makes all sorts of trucks. FWIW, I remember, vaguely, the front page of Road & Track magazine from sometime back in the 1960s. The headline was announcing a road test of a "Mercedes 12 Litre GT", which led most to assume some big-engined GT car. It was, however, an April issue, and the joke was this: GT stood for Garbage Truck.

Wed, 12/05/2012 - 11:58 | 3035782 JPM Hater001
JPM Hater001's picture

Ok Kito-

Do you recommend farms directly, grainery, commodities firm, Monsanto & ADM, or just plain trade food commodities?

If you could pick one which is best?

Wed, 12/05/2012 - 20:10 | 3037674 kito
kito's picture

i wish i could help with that one. but im no expert. monsanto is evil. wouldnt touch their stock. i only hope their company burns in hell where there is only organic food...oh wait, that wouldnt be hell,....... perhaps they will be banished to hell where they are forced to eat their own chemically induced toxic crap until they look like those lab rats.

easiest play is rja. rogers agri etf. thats for laymen like myself. 

Wed, 12/05/2012 - 13:48 | 3036282 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

they will still be driving ferrari’s too. 

http://www.ferrariagri.it/index.php?id=3&L=1


PS- these are awesome tractors, I own two. BCS-ferrari, top quality and durable.

Wed, 12/05/2012 - 10:12 | 3035271 FLUSA.com
FLUSA.com's picture

This is great news for home builders looking for some "creative" financing wizards to help get buyers loans and cook the books!!!  #economywinningdespitethecolapse

Wed, 12/05/2012 - 10:13 | 3035275 orangedrinkandchips
orangedrinkandchips's picture

AH-HA! (Nelson).....

 

(but shit, the last laugh is on us! d'oh!)

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