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Mike Corbat’s Got Two Choices For Citigroup Employees

Choice number one: everyone starts earning more money for the bank, following an exhilarating pep rally run by Corbat in the cafeteria involving senior executives shooting Citi swag into the crowd out of tee-shirt guns, cheerleaders, and a Spartacus Workout demo with before/after shots of MC, meant to inspire people and show them what they’re capable of if they really put their minds to something. Choice number two: Bank of America-style layoffs.

Michael Corbat, new chief executive officer, says he wants to run a more efficient bank. That means rousing or cutting one of Wall Street’s least productive workforces. Citigroup generated about $206,000 of revenue for each employee through the first nine months of the year, down 7.5 percent from the same period in 2011, while rivals including Wells Fargo & Co. posted increases, according to data compiled by Bloomberg. Excluding a one-time writedown of $4.7 billion, Citigroup’s productivity rose less than 1 percent…“It’s likely they will have some sort of headcount- reduction program more in line with Bank of America, which is looking to get rid of about 10 percent of employees,” said Erik Oja, an equities analyst at Standard & Poor’s in New York. “Having the lowest revenue per employee is something they will have to address, and growing the revenues is pretty tough right now with net interest margins falling and loan growth so low.”

Pandit probably was distracted from his cost-cutting goal as he grappled with public rebukes while trying to sell unwanted assets, said David Knutson, a credit analyst with Legal & General Investment Management America in Chicago, which owns Citigroup debt. Disposing of Citi Holdings assets remains “the elephant in the room,” he said. “He had a lot of plates in the air, and there were a couple of setbacks,” Knutson said. “Expense cuts are painful, and you’ve got to gore some sacred cows,” Knutson said.

So anyway, think about it, decide which route you want to go, get back to him with an answer by the end of the week.

Citigroup Productivity Worst of Big Banks Shows Challenge [Bloomberg]
Earlier: Mike Corbat Will Torch The Fat Off Citi Like He Torched The Fat Off His Abs
Related: Bank Of America Hoping To Fire Thousands Of Employees In Record Time

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42 Responses to “Mike Corbat’s Got Two Choices For Citigroup Employees”

  1. Guest says:

    Elephants, sacred cows, plates in the air… is this a bank or a goddammed 3 ring circus?

  2. guest says:

    "hamstrung with legacy issues" = This is all Pandits mess, I'm gonna try my best. No promises.

  3. Vikram's Hindi Pal says:

    "you’ve got to gore some sacred cows,”

    Buddy might want to start examining some motives along with those Citi debt instruments, just saying.

  4. Confused says:

    This may be a stupid question, so please weigh in on this, but isn't looking at revenue per employee and comparing it to non-consumer banks kinda dumb? (I know Wells Fargo is a consumer bank, and when I say consumer bank, I mean ATMs, branches, etc. And c'mon, half the bitching is that Citi sucks compared to JPM/GS anyway.)

    If you have a huge number of bank tellers, it's not like you're generating a ton of revenue with them, but you're also not paying that a lot of money.

    • Louis Winthorpe III says:

      Take out GS and MS if you want, but do you still find it unfair to compare Citi to Bank of America, Wells Fargo, and JPMorgan Chase?

      • Penny says:

        no one's buying your analysis here….Louis

      • Confused says:

        I'd take Wells and Chase out. They're not really as big consumer banking-wise as BofA, neh? And BofA is about as equally shitty as Citi, and they're doing layoffs. To get them in line with what? Smaller banks like Wells and Chase. Looks you can compare, but comparison none to good, eh?

  5. Guest says:

    1. Senior execs shoot Citi swag into crowd
    2. Gore sacred cows
    3. 1000 bicep curls
    4. Profit

  6. Theorist Dbreakerist says:

    Based on the picture, Mike Corbat is nanomorph mimetic poly-alloy assassin ie: T-1000. I'm long C.

  7. Guest says:

    Posing for a picture with dumbbells and your hat on backwards at 52 says it all.

  8. Benign Non-Sequitur says:

    The Druries are looking spectacular today.

  9. Guest says:

    How is he going to run the bank and find time for his Comedy Central gig every night?

  10. Guest says:

    I'd put posters of Meredith Whitney dressed as the Grim Reaper in all the elevators….as a start.

  11. Guest says:

    Citi is sitting on an ass-ton of prime real estate. Why not transform their trading floors into lofts?

  12. Guest says:

    Yeah, but I bet he can't bench 350.

    -Guy in Chicago with grandfather problems

  13. B-1 says:

    Where the hell's the records room?

  14. Guest says:

    "That means rousing or cutting one of Wall Street’s least productive workforces."

    Phew.

    -Kweku

    • John E. Corzine says:

      Or start swinging for the fences again ya know. It's been 5 years. I was looking into this interesting nigerian debt offering that just came last week at about 10 over.

  15. B-52s says:

    If you see a faded sign by the side of the road that says
    15 miles to the love shack', love shack, yeah, yeah
    I'm headin' down the Atlanta highway
    Lookin' for the love getaway, heading for the love getaway
    I got me a car, it's as big as a whale
    And we're headin' on down to the love shack
    I got me a Chrysler, it seats about 20
    So hurry up and bring your jukebox money

  16. Guest says:

    Sacred cows? Way to kick a brother when he's down Knutson.

    – VP

  17. R. Burgundy says:

    1001, 1002, 1003… Oh, hey Veronica..

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