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Citi "Resizes Infrastructure" Post Fed Rate Hike - Slashes 2,000 Jobs

Tyler Durden's picture




 

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.

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Finally, we wonder if Citi has viewed this chart...

 

And sees the painting on the wall.

 

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Fri, 12/18/2015 - 15:59 | 6940446 Soul Glow
Soul Glow's picture

No bonuses for you!

Fri, 12/18/2015 - 16:10 | 6940482 Babaloo
Babaloo's picture

"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...

Fri, 12/18/2015 - 16:25 | 6940549 Dr. Engali
Dr. Engali's picture

Poor, they knew about the rate hike, which every thinking person knows will flatten the curve because we are Japan, and they planned accordingly.

Fri, 12/18/2015 - 16:28 | 6940558 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

aww poor shitygroup....

Fri, 12/18/2015 - 16:35 | 6940578 Dr. Engali
Dr. Engali's picture

The above statement should begin with 'oooor' I hate when spellchecker corrects a word I'm intentionally spelling wrong.

Fri, 12/18/2015 - 17:48 | 6940870 Never One Roach
Never One Roach's picture

Moar "Change you can believe in " !

Fri, 12/18/2015 - 18:39 | 6941044 Babaloo
Babaloo's picture

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. 

Fri, 12/18/2015 - 16:11 | 6940488 huggy_in_london
huggy_in_london's picture

Oh no, don't worry... they'll find a way to shove their snouts in the trough

 

Fri, 12/18/2015 - 16:07 | 6940471 Yen Cross
Yen Cross's picture

   CITI is rapidly becoming VILLAGE...

Fri, 12/18/2015 - 16:07 | 6940472 Mark Mywords
Mark Mywords's picture

That ain't paint on the wall. That's shit, flung on the wall when it hit the fan.

Fri, 12/18/2015 - 16:14 | 6940498 yellensNIRPles
yellensNIRPles's picture

Less bankers? What's the problem?

Fri, 12/18/2015 - 16:49 | 6940640 Vlad the Inhaler
Vlad the Inhaler's picture

Nah, they're being replaced with cheaper bankers in Bangalore.

Fri, 12/18/2015 - 16:18 | 6940513 Kolchak
Kolchak's picture

Everythings awesome till it ain't I guess.

Fri, 12/18/2015 - 16:20 | 6940521 two hoots
two hoots's picture

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?"

Fri, 12/18/2015 - 16:23 | 6940534 Yen Cross
Yen Cross's picture

 o/t--- The futures h-6 ES contract just broke 2000.

Fri, 12/18/2015 - 16:24 | 6940543 Mark Mywords
Mark Mywords's picture

Add Morgan Stanley to the "naughty" list for Santa.

http://finance.yahoo.com/video/morgan-stanley-cut-1-200-173537258.html

Fri, 12/18/2015 - 17:12 | 6940606 zibrus
zibrus's picture

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.

Fri, 12/18/2015 - 17:40 | 6940851 silverer
silverer's picture

I guess this is good news.  Fewer people to fuck with your money.

Fri, 12/18/2015 - 22:04 | 6941651 Barrack Chavez
Barrack Chavez's picture

Only an Obama supporter would think the back office staff (not the front office sales force) "fucked with your money"

Fri, 12/18/2015 - 18:06 | 6940875 Itchy and Scratchy
Itchy and Scratchy's picture

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'! 

Fri, 12/18/2015 - 17:53 | 6940890 Itchy and Scratchy
Itchy and Scratchy's picture

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!  

Fri, 12/18/2015 - 18:15 | 6940972 The Gladiator
The Gladiator's picture

I guess it's time to replace "since Lehman" with "Post fed rate hike".

Fri, 12/18/2015 - 22:12 | 6941680 JailBanksters
JailBanksters's picture

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.

 

Fri, 12/18/2015 - 22:17 | 6941696 Barrack Chavez
Barrack Chavez's picture

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.

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