Citigroup to cut 50,000 jobs-CNBC

[UpInArms]

Source: CNBC via Reuters

NEW YORK, Nov 17 (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) plans to cut 50,000 people from its workforce, CNBC television said on Monday, as souring economies and global credit conditions cause the U.S. bank with the farthest reach worldwide to retrench.

The job cuts are on top of the roughly 23,000 jobs Citigroup has already slashed this year, and would leave the second-largest U.S. bank with about 300,000 jobs worldwide.

Cuts are expected to come from layoffs, the sale of units and attrition, CNBC said. The bank was not immediately available for comment.

The cuts are Chief Executive Vikram Pandit's most dramatic move yet to restore profitability and bolster a sagging share price. Last week, the stock fell into the single digits for the first time since Sanford "Sandy" Weill created Citigroup in 1998 from the merger of Travelers Group Inc and Citicorp.

Pandit has faced growing criticism from investors and others for failing to implement a workable turnaround plan for New York-based Citigroup.

The bank has lost more than $20 billion in the last year, hurt by bad bets on complex and risky debt, often tied to mortgages. Some analysts say the bank might not be profitable before 2010.

Read more: http://www.reuters.com/article/bondsNews/idUSN1746833620081117

[antimatter98]

1. Good. Who needs these cuprits. n/t

[hewitt]

2. Come on... these are people...

My daughter, a Texan, works for Citibank. She is a single parent who works long hours, like many of her colleagues at headquarters. We need some sympathy for the worker bees who do not make the company's decisions. Hold management accountable, but do not disparage the hired help.

[Lerkfish]

3. these "cuprits" are the workers. the CEOs are not being cut.

I find your lack of compassion appalling, as someone who is to be laid off in two months myself.

[alcibiades_mystery]

13. These "culprits" are the middle class and workers from major metro areas

The secretaries and sales assistants and operations people that come from the working class neighborhoods of New York's outer boroughs and Chicago and LA. These culprits are ordinary workers who just happen to work in "financial factories" rather than the much lauded manufacturing sectors.

The financial industry has, over the last 30 years, been the roadmap to the middle class for many working class people in our major metro areas. Not rich, not privileged. Just fucking workers, with families and bills and all the troubles of your average assembly line auto worker, and often making less money.

Point being: You're a fucking ignorant jerk.

[truthisfreedom]

20. WTF?

[dipsydoodle]

4. 75000 according to the BBC

US bank Citigroup has announced plans for up to 75,000 job cuts, up from a previously announced total of 23,000.

Citigroup said in a statement that the cuts represented a reduction of about 20% of its staff, leaving the bank with 300,000 jobs worldwide.

The cuts will come from redundancies, the sale of units and natural wastage, the bank said.

Citigroup has lost more than $20bn (£13.6bn) in the past year because of the global financial crisis.

http://news.bbc.co.uk/1/hi/world/americas/default.stm

[alcibiades_mystery]

14. 75,000 = the previous 23,000 + 50,000 more

...

[dipsydoodle]

19. Yes I see now.

Thanks.

[Vinnie From Indy]

5. Any bets that Pandit and the rest of the top management aren't taking a pay cut?

These layoffs in America are the fruit of globalization.

[Beer Snob-50]

10. but according to many of the right..

these are the people who have put up the most risk for this company. Of course they should make all they can! it is free market at is't bet.

[Lucky Luciano]

12. Pandit is unlikely to take a bonus.

Also, do not forget that Pandit inherited the problems that Chuck Prince created less than a year ago, so it is not 100% his fault.

[AllentownJake]

6. Don't the Saudi's own a good portion of Citigroup?

Must be rough for the Madrassa funders...first price of oil goes down and now this.

[thereismore]

18. Yes, I think up to 49%. nt

[Lucky Luciano]

23. Yes, the good prince has held just under 5% for a long time

Since the stock was in the mid forties at least.

[Eurobabe]

7. Gee, since they don't have to pay all those people

Does that mean interest on Citibank credit cards will be reduced? :sarcasm:

[ananda]

8. Also, I understand that ChaMu is ..

.. laying off thousands next year.

[madhawk]

9. forms

i was wondering...........what forms do i fill out to get me government bailout? i am going under too.
hawk

[napi21]

11. I DO feel bad for those to be laid off, but how the hell does any business

have THAT MANY people they can get rid of and still stay in business? I'd like to know what % that is of their total workforce?

[alcibiades_mystery]

15. It is one-seventh of their total workforce

The problem is that Citigroup was the lead in the big mergers of the late-1990's (it was really Citi that pushed and pushed for Gramm-Leach-Bliley), and so they have overwhelming 'redundancy' issues, or so they say.

Disclosure: My wife works for Citigroup, although in a relatively safe position (we hope...).

[gristy]

16. This is just the strangest thing. Selling a unit does not mean layoffs

Cuts are expected to come from layoffs, the sale of units and attrition, CNBC said.

If GM sells their Saturn unit to Toyota, does this mean they have "cut 10,000 jobs" (or however many work for Saturn)? Of course not.

The unit has simply been sold. If it is a real sale and real money has been spent to buy the unit, then I don't see the new owner laying everyone off, and even if he did that would be his business and certainly has no business being reported at the time of the sale.

I'm scratching my head trying to figure out who is benefiting from the obvious distortion of Citi's layoff situation. I'll be watching to see if it becomes part of a pattern.

[truthisfreedom]

21. When mergers take place, "duplicate" jobs are eliminated. This may be what they're suggesting.

If a "unit" is sold to another credit card company (or bank), that bank may have employees to handle the work and not need the "duplicate" jobs. Of course, this results, often, in over-worked, harried employees trying to handle twice as much workload as before.

[Doremus]

22. The cuts come from redundancy. The new owner already has staff

that performs those duties, usually in another city, and doesn't need them any longer.

National City Bank here in Cleveland was sold recently and there will be many, many layoffs due to redundancy.

[no_hypocrisy]

17. So let me get this straight.

As a taxpayer, I gave money to Citi.

And Citi is now dis-employing 50,000 of its workers.

And with the money given and the money saved, Citi wants to buy other banks.

And dis-employ the workers at the acquired banks.

* * * *

I want my money back.

[spinbaby]

24. Refresh my memory

Is this the outfit that last week announced they were going to raise credit-card rates to make up for shortfalls? :mad: