Citigroup Announces Cuts: 17,000 Jobs To Go

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Citigroup announced plans to cut or reassign 26,500 jobs today. The cuts hit the “whisper number” that Wall Street had been talking about all week—surprising some observers who had predicted that chief executive Chuck Prince might try to impress investors with deeper and wider cuts. Apparently Prince does not have this “better than expected” game down yet.
The actual job eliminations, in fact, barely exceeded the 15,000 number that had so notably failed to impress the markets earlier this year. Citi is cutting just 17,000 jobs out of its total workforce of 327,000—a number that some scoff at as barely better than attrition. “Accelerated attrition,” was how one Wall Street analyst put it to DealBreaker this morning. Only 1,600 jobs are being eliminated in New York City.
Another 9,500 jobs will be relocated from expensive financial labor markets such as New York, London and Hong Kong to less costly areas—perhaps India.
Citi remains an institution caught in a bind. Although Sandy Weill tried to build the bank into a one-stop financial institution, the dream of a unified banking firm remains largely unrealized. That dream, some believe has been stymied by regulations in the US and abroad that prevent Citi from realizing synergies from its combined business. Others say Citi has been damaged by a lack of leadership in its top ranks.
Even as it announced plans to streamline operations and save $2.1 billion this year through cost cutting, the bank is apparently considering spending $600 million to buy a hedge fund founded just one year ago by a former Morgan Stanley executive Citi wants to hire. That’s a pretty expensive executive acquisition program.
We’re looking for more news from inside Citi. And that’s where you come in. Email your Citi-cuts stories to tips@dealbreaker.com or leave a comment below.

Citi to Cut 17,000 Jobs in Broad Overhaul
[DealBook]

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