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Citi Firing 11,000
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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This will be a nice offset to any tax hikes Obama jams through. /sarc
Tear.
Tax revenue just took a major hit. Gonna need to find 11000 more rich people mucho pronto.
Fire em all. Rich people don't pay taxes.
http://www.prisonplanet.com/bank-laundering-whistleblower-labeled-insane-then-locked-away-in-psychiatric-hospital-for-seven-years.html
. <------ my violin
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.
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.
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.
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.
what the hell are you talking about?
In the slim chance you might be asking an honest question:
http://www.wickedlocal.com/concord/archive/x38162002/For-patriots-hunger...
euuhhh.... Yes I'm a Darwinian :)
People are descendants from apes. And they became "Humans" after the Aliens had sex with those apes.
+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.
http://answers.yahoo.com/question/index?qid=20090324132904AAfn3ye
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.
+1 for having the balls to call a spade a fuckin' dirty-ass shovel.
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.
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.
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.
[ dp ]
Not if these people become productive ditch diggers. Sounds like a win-win to me.
You dig the hole, I'll fill it in... ;p
The world needs ditch diggers, too...
http://www.youtube.com/watch?v=eiRGRvE_Wqg
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.
looking for farm labor in California
Try offering higher pay.
I might go long Revolution this week.
The "new businesses" created just went up 11,000.
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.
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.
But it's always logical when it's a bankers.
-Upgrade 2.0.
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."
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.
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.
That's OK, McDonalds stand ready to hire all this exceptional talent.
No thanks. I really don't want these sociopaths pissing in my coffee.
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
Oh... I didn't know that sir.... here's the coffee you ordered...
11,000 100K jobs lost and 11,000K 8 dollar Wally World Jobs added for Xmas.....watta bargain
I'm pretty sure there aren't even 11M shitjobs to be found; take a look at Wally World's 10K for the deets.
Might find some jobs in Mexico.....good thing we had the foresight not to put a fence there.
Are employees in the F.I.R.E. sector makers or takers?
Nice , it's going to be a good day !
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
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.
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?
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.
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.
This is great news for home builders looking for some "creative" financing wizards to help get buyers loans and cook the books!!! #economywinningdespitethecolapse
AH-HA! (Nelson).....
(but shit, the last laugh is on us! d'oh!)
Driving on I40 in NC from Durham towards Greensboro there is a large Citi call center ( I guess) right next to the highway. For years there was a huge banner on the building stating that Citi was hiring and info to inqure. A few weeks ago I went by and the sign was gone.
I suppose the whole building could be empty soon, eh?
Fuck em.
Ello Sil,
I am calling about youl cledit limit...
NO SIL!
I'm flom Amelica! No Chinese callcentel hele!!!
HAPPY HOLLIDAYS MOTHERFUCKERS!!!!!!!
Memo
From: Citi CEO
To: Former Citi Employees
Suck it in and cope, buddy. Suck it in and cope.
And if they're lucky, they'll hire GEORGE CLOONEY THE CLOWN to fire them!
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=4&cad=rja&ved=0CFIQtwIwAw&url=http%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DMIexe6aa14w&ei=tmS_ULD8IIej4gTonoDAAw&usg=AFQjCNHTle8fS_CN4Ca2Ya8Uk4D7heP2GQ&sig2=1JSzar-rcmoNuviGviUoyg
Well at least now we can observe Simpson/Bowles math skills & see if they can add another 11K to the 310M teat suckers.
Mark Zandi of Moody's:
"It's due to Sandy."
250k jobs..for what showing up and being a assisant vp??..the could dump another 20k..they are way to bloated..lol
they need at least 6 VP's to keep the water fountain running so...
Reminds me a bit of my bank :) There are about 5 people there. I have no clue what they're doing there. But IF you enter, they look at you like "WHY IS THIS GUY COMMING IN?!?! ARE THE ATM'S BROKEN?!?!"
Louis CK did a great skit on that ("Hilarious"), "What are those people doing in there!? Are they cleaning??"
I went to a bank recently to get some change sorted. They were charging 8% for use of their machine, but there was a nice big advertisement that the service was FREE for account holders. So I walked over to the teller and asked how long it would take to open a basic savings account.
She literally would not tell me. She said I'd have to sit and "consult" with someone about what services would meet my needs.
I sucked it in and coped and paid the fuckin' 8%.
That's where we're at, though--all those huge expensive buildings filled with employees whose job basically consists of *not* signing up new customers.
8%?!?!?!?!?!?!
Exactly. That's why I was prepared to open an account with them. I wasn't going to tell them I intended to close it out immediately after we'd concluded our business.
Useless fucking paper-pushers about to become productive ditch diggers. Sounds like a win-win to me.
Merry christmas !
I can't wait to hear Obama explaining how we're in a recovery
Here's my Christmas list -
1) I have yet see Ben Bernanke publish a regular accounting of the toxic crap that FRBNY is protecting Citibank equity and debt holders from with taxpayer dollars; and
2) I have yet to hear Mary Schapiro ban Citibank from all acquisitions and financial "innovations" without prior approval from the SEC, and demand that Citibank strengthen both its balance sheet and liquidity above and beyond the requirements of Basel III.; and
3) I have yet to hear Timmy Geithner proclaim that thousands of Citibank layoffs are a good first step towards reducing Citibank from TBTF to a manageable risk, much less that Citibank should be monetizing their cherished NYC real estate to raise capital now.
It could be worse, my money could be in a US regulated bank, where Ben Bernanke would be debasing it with even less regard for the broader consequenses.
http://www.zerohedge.com/news/2012-12-03/evolution-us-and-uk-central-ban...
Hooray! More banker pink slips! Good start, C. Now...on with the banker purge.
That's a good start! Now if they can the rest and burn the buildings to the ground we'll be talkin!
Don't worry Schmidt will fix it...
Treasury Secretary Google?Google that bitchez...
edit: btw just how the fuck is that a "bigger payoff" than being Google Chairman? Don't answer that, I don't think I want to know.
it's all good according to bloomberg, citi fired employees will get jobs as msm contributors.
Trillion + per year of deficit spending is doing....
At least they could have waited for Christmas eve. I have wondered all my life when I see announcements like this, WTF were all these people doing before getting canned, that the company can still function without them?
Don't know if its worth looking into but I did notice a bunch of Moody's flash reports showing no rating change due to the novation of swap agreements and the replacement of swap counterparties from Citi. The most recent one I saw was a switch from Citi to State Street. Looked like plain vanilla fixed for floater swaps... some housekeeping on the derivatives desk or is something else going on?
This announcement tells me they really should be firing 20,000 because it consists primarily of consumer banking and back office heads. Investment banking is still top heavy.
Pretax charge of $1bb ? That amounts to $90,000 + per employee. I'm sure Citi is giving all the employees a nice send off. No way it costs 90k to terminate each employee. They would've been fired a long time ago, if the system was allowed to work and Citi failed - before being bailed.
Each employee is being given a "free" copy of "It's a Wonderful Life".... Happy Holidays.
Bacl in 2004-2005 the company I worked for was preparing for layoffs and held seminars based on Who Moved My Cheese? They even gave out foam wedges colored to look like cheese with that inscribed. I didn't bother attending, but managed to acquire one of the 'cheese' wedges. On the empty side I, being a programmer, wrote
if
you move my cheese
then
I break your kneecaps
end if
Curiously, I lasted there until mid-2011.
Fuck em! If you choose to be a minion, then to hell with you.
More recruits for OWS. Those jobs are not coming back.
No matter how you look at it Citi is in a runoff. More of this to come.
How much more cynical can it get? 11,000 people losing their jobs is touted as a big day for Citigroup shareholders on Bloomberg as I write this...
talking about talking up further this already overstretched market... simply disgusting!
BULLISH!!
Sing along boys....
"May you're merry bells keep ringing, may your every wish come true"
Happy holidays fuckers.
This fucking welfare bank should be closed and all the banksters jailed
No sympathy for these assholes. You chose to work for Satan and hopefully you will all DIAF
Did they really call these layoffs "repositioning actions?"
Dear Ex-Citi employees,
How's that feel?
One of the CNBC cunts just explained how bullish this is
Re Sandy's Fault?
Yes, Sandy Weill's - for ever having created this monstrosity.
As I heard it, Sandy got to keep Bill Clinton's pen used to sign the law that revoked Glass-Steagall and made this monstrosity possible. Actually the law was passed after Sandy broke the Glass-Steagall Act with acquiring Traveler's and while Bill's cum stains were still drying on Monica's dress. But he did not have sex (in the conventional sense) with that bank CEO.
"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."
Jeez, they certainly pay their tellers and custodians well. If only I had known.
Well, the Citi folk are flooding my building in Wilmington, DE . . .even got a purdy sign atop the building now. Based on this anecdotal evidence, Citi is doubling down on its key operations. . . cold calling people for loans; calling them back later to collect on the now-delinquent loans.
CNBC and the corporate world can declare victory when all the money in the world is held by shareholders and there are no wage earners left collecting paychecks.
They are getting closer than ever before.
How convenient, "Vikrim Pandit" got the hell out of Dodge before he was hauled off to the "Town Square" for beheading...
1 Sacajawea dollar would've been too much to give him as a severance.
"Don’t cry too much for Pandit. He got $165 million from the sale of Old Lane Partners LP, a hedge fund he co-founded, to Citigroup. At the helm of Citigroup for five years, he received a total of about $56 million in compensation, according to an analysis by the Journal."
"Pandit managed to keep Citi afloat in the wake of the financial crisis and pay back billions in U.S. government bailout money. Yet he never seems to hit his stride with shareholders, who voted no this past April 17 on a resolution to boost his pay to $14.9 million in 2011 from $1 a year."
http://blogs.marketwatch.com/thetell/2012/10/17/heres-what-vikram-pandit-gets-in-severance-pay-not-much/
Jump, you Fuckers.
How disappointing that it will be Citi that finally goes belly up. It's not that they don't deserve to, but I was TRULY hoping it would be Banksters of Amerika.