CITI to cut up to 40,000 jobs tomorrow

[meisje]

Citigroup CEO Vikram Pandit plans to make a dramatic statement Monday morning about major cut backs in the struggling firm's workforce aimed at calming market fears that the troubled financial services giant isn't taking the steps necessary to address its many ills, which include a bloated cost structured that has sent shares of its stock reeling, people close to the company said.

These people say that as of Saturday afternoon the exact size of the cuts is not known, but it's expected to be higher than the 23,000 cuts the firm made as of end of the third quarter to its workforce of approximately 350,000 worldwide. These people say the overall size of the cuts that Pandit will announce during a highly anticipated town hall meeting could add up to close to 40,000 depending on the number of asset sales, such as spinning off businesses the firm could pull off in addition to additional planned layoffs.

http://www.cnbc.com/id/27737329

[gristy]

1. OK, Citigroup is going to lay off more people. But not 40,000.

Selling a part of a business is not the same as laying off all the folks in that part.

[meisje]

2. 40,000 jobs is 40,000 jobs

[RB TexLa]

3. But people working for a group that is spun off are still working and have not lost their job.

[gristy]

4. If I sell a part of my business in which 20,000 are employed,

they do not automatically lose their jobs as a result of the sale. The new owner may have his own ideas about contracting or expanding the business, but that is a separate issue.

[Princess Turandot]

13. Depending on how they do their financial projections/budgets..

they may also be eliminating/freezing positions which have recently become vacant or which will become vacant shortly, through normal turnover. With that many employees, that can add up to a fairly large number, even in not-so-good job markets. Better that, than laying off people.

Living in NYC, they've been my main bank for upwards of 3 decades (yikes!) and have always IMO provided pretty decent consumer services. (I had a brief flirtation with Chase, because they had a branch in a building where I worked for several years, and they were awful.) I think they were the bank that pioneered wide scale ATM's. While that of course led to job eliminations, 25 years later, it's hard to imagine standing in line with dozens of other people to do something as simple as get cash or deposit a check.

[meisje]

14. I admit I was wrong, it's actually more like 52,000!

[GrizzlyMan]

5. Should we bail them out?

Or are those jobs irrelevant since they are non-union jobs?

[xchrom]

6. recommend

[givemebackmycountry]

7. You know the other day I saw a big fat dude....

Roll up to a stop sign in a giant pickup truck and pop his door open.
He threw out a couple of crumpled Wendy's bags, and a big ass empty 64 ounce cup of what I imagined was Diet Coke.

40,000 jobs?

What's the difference?

What a great country.

[Rosa Luxemburg]

8. oh oh!

another one bites the dust

[OhioChick]

9. Ouch. n/t

[MrsBrady]

10. ...ugh...how long till jan 20th...... n/t

[GliderGuider]

12. If you think the inauguration is going to fix this shitstorm, you're dreaming.

Having Obama in office may help somehow, but the freight train of industrial civilization has jumped the track and one man ain't gonna be able to put it back on the rails.

What we're seeing is the endgame of the infinite growth paradigm that's been honed and refined world-wide for at least a couple of thousand years. It may look like the Repukes are to blame because we noticed the derailment on their watch, but plenty of Democratic presidents over the last couple of hundred years have assumed untrammeled growth as their nation's birthright and done everything in their power to encourage it. Hell, look at the sense of entitlement that's come out of hiding on DU in the last 12 days.

One thing I'm convinced of is that Obama is being set up to wear it.

[SoCalDem]

11. 40K a day should cut up their Citi credit cards and mail the pieces to them

:)