Citigroup to slash 52,000 jobs

[Modelworks]

Is it a competition among companies to see who can post the most job cuts ?
The future doesn't look bright.
http://www.reuters.com/article.../idUSTRE4AG35320081117

NEW YORK (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) revealed plans to cut 52,000 jobs by early next year in a dramatic move to restore the No. 2 U.S. bank to health as it combats mounting debt losses and sagging economies worldwide.

The cuts announced by Chief Executive Vikram Pandit on Monday affect 15 percent of Citigroup's work force, and are in addition to 23,000 jobs eliminated between January and September.

Citigroup plans to slash expenses by as much as 20 percent, and spend a total of $50 billion to $52 billion in 2009. That compares with $61.9 billion over the last four quarters.

The cuts will be global, affecting many regions and business lines, including the retail and investment banks, a person close to the matter said. About one-half will come from layoffs and attrition, and the rest from the sale of units, such as the German retail banking business.

Pandit became Citigroup chief executive last December, and has faced much criticism from investors and others for failing to implement a workable turnaround plan. The bank has lost $20.3 billion in the last year, and some analysts do not expect it to make money before 2010.

"As the economy continues to weaken they will have greater credit losses," said Michael Holland, founder of money manager Holland & Co in New York. "Cuts will lessen the losses, but they in no way guarantee profitability."

Citigroup's latest cuts are the most by any U.S. company since the global credit crisis began last year. They are also the second most ever, trailing the 60,000 that International Business Machines Corp (IBM.N: Quote, Profile, Research, Stock Buzz) announced in 1993, according to outplacement firm Challenger, Gray & Christmas Inc.

The latest cuts would leave Citigroup with about 300,000 employees, down 20 percent from the end of 2007 and about the same number it had at the end of 2005. Pandit told employees in a memo the bank has spent the last year "getting fit," and projects a "difficult" 2009 for clients and customers.

Shares of Citigroup, a component of the Dow Jones industrial average .DJI, slipped 19 cents, or 2 percent, at $9.33 in afternoon trading on the New York Stock Exchange.

 

[miketheidiot]

damn.

 

[miketheidiot]

The latest cuts would leave Citigroup with about 300,000 employees, down 20 percent from the end of 2007 and about the same number it had at the end of 2005. Pandit told employees in a memo the bank has spent the last year "getting fit," and projects a "difficult" 2009 for clients and customers.

clearly some excellent long term planning there :roll:

 

[Mermaidman]

And Citi wanted to acquire Wachovia?

 

[RightIsWrong]

Just think of how their bottom line will recover after they uproot the lives of the 75k families and get a couple hundred billion from them via bailouts given using their and their children's taxes.

 

[Pepsei]

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

 

[alphatarget1]

Funny thing is... the pronunciation of the letter C sounds just like "corpse" in Cantonese.

Jeah, burn Citigroup burn!

 

[jman19]

Originally posted by: Pepsei

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

Didn't they prop the company up so it wouldn't file bankruptcy? Lulz.

 

[mugs]

Originally posted by: Pepsei

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

Wachovia would have been fucked if it weren't for Citigroup. :roll:

 

[ponyo]

Originally posted by: Pepsei

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

No they wanted Wachovia because they wanted to become too big to fail and they could've hid all their losses and toxic assets on the merger writeoff.

 

[imported_Imp]

I know someone who's doing his masters in some business/trading thing now. He bailed on $80k+ a year computer programming to do that. Good luck to him getting a job with a couple hundred thousand experienced finance people out there.

 

[miketheidiot]

Originally posted by: Naustica

Originally posted by: Pepsei

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

No they wanted Wachovia because they wanted to become too big to fail and they could've hid all their losses and toxic assets on the merger writeoff.

they were already FAR too large to fail.

 

[ponyo]

Originally posted by: miketheidiot

Originally posted by: Naustica

Originally posted by: Pepsei

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

No they wanted Wachovia because they wanted to become too big to fail and they could've hid all their losses and toxic assets on the merger writeoff.

they were already FAR too large to fail.

Even bigger is better if you want govt help. Just think how much toxic crap they could have hid in the mess that would've been Citi-WB. Pigs would've had a field day.

 

[Pepsei]

Originally posted by: mugs

Originally posted by: Pepsei

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

Wachovia would have been fucked if it weren't for Citigroup. :roll:

Wachovia was talking to Wells already, Wells wanted more time to look at the books, the Government says no, so WB went to Citi for their offer. that gave Wells 2 more days to come up with the offer.

of course, we didn't know the whole story until later, when it trickles down from the upper management.

Wachovia/taxpayers would've been fucked even worse if citigroup took over. taxpayers would be on the hook for the citigroup's loss exceeding...er..i forgot the amount.

 

[jman19]

Originally posted by: Pepsei

Originally posted by: mugs

Originally posted by: Pepsei

Originally posted by: Mermaidman
And Citi wanted to acquire Wachovia?

no, they wanted to STEAL Wachovia, so they can sell part of wachovia off to write off their losses. would've worked except Wachovia is actually worth slightly more that Wells Fargo came back with a better offer after looking at the WB books.

:thumbsdown: hope they go out of business soon.

Wachovia would have been fucked if it weren't for Citigroup. :roll:

Wachovia was talking to Wells already, Wells wanted more time to look at the books, the Government says no, so WB went to Citi for their offer. that gave Wells 2 more days to come up with the offer.

of course, we didn't know the whole story until later, when it trickles down from the upper management.

Wachovia/taxpayers would've been fucked even worse if citigroup took over. taxpayers would be on the hook for the citigroup's loss exceeding...er..i forgot the amount.

The Gov't said no because they were going to shut the doors on WB before WFC was ready to make a move.

Anyway, with the massive tax break WFC is getting from the deal, taxpayers are still fucked.

 

[daniel49]

I noticed today that Bush has decided that the 700 Billion dollar bailout will be split with the Obama administration.
350 Billion for each administration.

I feel better now knowing that the taxpayer will be screwed in a bipartisan fashion .

 

[Puffnstuff]

Well my oldest son works for citi and even he isn't being told the details of this latest announcement. I fear that this is going to get tremendously worse before it gets better. Even in the industry in which I work my employer announced a new plant closing yesterday on top of the already scheduled closings. Super great depression here we come.

 

[Pepsei]

Originally posted by: Puffnstuff
Well my oldest son works for citi and even he isn't being told the details of this latest announcement. I fear that this is going to get tremendously worse before it gets better. Even in the industry in which I work my employer announced a new plant closing yesterday on top of the already scheduled closings. Super great depression here we come.

sorry to hear about that. Wachovia Securities went thru their layoffs after the AGE merger. I was lucky that our department have enough essential knowledges/skills that we were left untouched.

Of course, even having knowledges/skills that very few possess, doesn't guarantee anything, no one is untouchable, it just makes it expensive to replace you.