This page has been archived and commenting is disabled.
Citi "Resizes Infrastructure" Post Fed Rate Hike - Slashes 2,000 Jobs
Perhaps in a recognition of the collapsing yield curve, and for sure in the face of the mainstream's bullish narrative on US banks in a post-rate-hike paradigm, Citi has announced plans to cut at least 2,000 jobs starting next month. Despite exuberance over higher rates, it appears Citi's CEO Michael Corbat wants to restructure some of the bank’s businesses.
As Bloomberg reports, the substantial portion will be in middle or back-office positions, according to a person briefed on the plans, who asked not to be identified discussing personnel matters. The reductions are part of a repositioning the firm announced this month and will occur across the New York-based lender’s global footprint, people familiar with the matter said.
Citigroup, which had 239,000 workers at the end of September, has already held discussions with some affected employees, said one of the people, who declined to provide specifics on the businesses targeted.
Employees in the institutional business, which houses the trading and investment-banking operations, will be among those dismissed, one of the people said. Cuts in that unit will be more in line with annual performance-based dismissals that Wall Street firms employ to maintain competitiveness and adjust businesses to shifting markets, the person said.
Three years after taking over as CEO, Corbat is still finding areas to trim in a firm that boasted 374,000 employees before the financial crisis forced a government bailout. The bank will take a charge of about $300 million in the fourth quarter to help “resize our infrastructure and our capacity to deal with the continuing low-revenue environment,” Chief Financial Officer John Gerspach said Dec. 9 at an investor conference in New York.
* * *
Finally, we wonder if Citi has viewed this chart...
And sees the painting on the wall.
- 11 reads
- Printer-friendly version
- Send to friend
- advertisements -




No bonuses for you!
"Perhaps in a recognition of the collapsing yield curve, and for sure in the face of the mainstream's bullish narrative on US banks in a post-rate-hike paradigm, Citi has announced plans to cut at least 2,000 jobs starting next month...."
Because they made plans to lay off 2000 people in the last two days...
Poor, they knew about the rate hike, which every thinking person knows will flatten the curve because we are Japan, and they planned accordingly.
aww poor shitygroup....
The above statement should begin with 'oooor' I hate when spellchecker corrects a word I'm intentionally spelling wrong.
Moar "Change you can believe in " !
The curve's been flattening since December of '13, and they're just now getting around to planning accordingly?
They must be dumber than I thought.
The markets are doing so well that all large companies are firing...
Morgan Stanley:
Morgan Stanley to Cut Up to 5% of Stock-Trading Staff, WSJ Says
Statoil targeting up to 1,500 job cuts, offers Norway job buyoutsToshiba to cut up to 7,000 jobs: Nikkei
Rabobank to Eliminate 9,000 Jobs in Overhaul of Dutch Lender
Shell to cut 2,800 jobs once BG Group merger completes DuPont to shed 5K+ jobs ahead of Dow merger
From '200' to '50' to '0' staff: Yahoo to shut shop in DubaiOh no, don't worry... they'll find a way to shove their snouts in the trough
CITI is rapidly becoming VILLAGE...
That ain't paint on the wall. That's shit, flung on the wall when it hit the fan.
Less bankers? What's the problem?
Nah, they're being replaced with cheaper bankers in Bangalore.
Everythings awesome till it ain't I guess.
Budget Briefing: " We can either replace 2000 ergo chairs for $300,000 that last 5 years or lay off the people that use them for $800,000,000 + benefits for the same 5 years?"
o/t--- The futures h-6 ES contract just broke 2000.
Add Morgan Stanley to the "naughty" list for Santa.
http://finance.yahoo.com/video/morgan-stanley-cut-1-200-173537258.html
Speaking of ShittyBank, they recently let me take out $20,000 cash on my credit card, with zero percent down, zero interest, until Summer of 2017. Yes, 2017, not a typo, 0%. (Actually if you count fees it comes to about 3% total over 18 months or something like 2% annualized). Bought some silver and some bitcoin with it. Fixed my truck up with repairs, new tires. Paid off high rate CC debt. Hopefully can pay off said loan for pennies in about 18 months with profits from either silver or bitcoin.
How else can you win in this gambling casino? I suppose they could always kick the can down the road another two years.. and silver goes to zero and bitcoin goes to zero, and I lose my job... I wonder what it was like living in a time when you weren't punished for trying to save and forced to gamble.
Some cage they built!
Edit: Just another little tidbit. They let my payments apply to my high interest debt first. So... I can pay $1000 of citi debt @ 14.7% off with cash, then turn around and get a 0% (or 2% see earlier comment) cash loan for $1000. I call it debt re-structuring. I'm suprised they even allow this, but hey lets me join the can kicking game. Ultimately will save a few thousand by doing this.
Maybe by using these 'juicy' deals they are getting more plebs like me to move 'debt' capital into their bank, thus bolstering their 'balance sheets', during this giant debt destruction depression. Only reason I can think they would do it.
I guess this is good news. Fewer people to fuck with your money.
Only an Obama supporter would think the back office staff (not the front office sales force) "fucked with your money"
How about we start just closing down some of these too-big-too fail scam operations? I hate to break it to the Citi's of the world but nobody really cares if u live or die just in case u were wonderin'!
Citi how about you try this dynamic long-term corporate strategy ......
....shut the fuck up and start paying back depositers the interest you have extorted from them over the past 7 years you pieces of shit!
I guess it's time to replace "since Lehman" with "Post fed rate hike".
This sounds an awful lot like: If we have to pay to pull money out of Yellen umm.....so we can lend it, we'll go bankrupt.
Better pay (for CEOs) through more layoffs (for everyone else)
If Corbat spent more time managing the business, and less time managing the stock price (and his own options) -- both the 2,000 departing staff and the 100,000 departing customers would be a lot happier. And not for nothing, but taxpayers wouldn't have to bail these political cronies out every few years.
Instead of leadership, the USA has Obama. And unfortunately that sets the tone for all the other leaders (CEOs, Congress, etc) throughout the country.
Corrupt tricky dick in the White House --> corrupt tricky dicks everywhere.