Citi is about to layoff (more) folks
Heard from a friend of a friend… if you catch my drift.
Wallet down, probably going to miss targets, etc. ECM, lev fin, and even M&A going to get clapped apparently.
Rumor mill or legit?
May 23, 2023May 23, 2023
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Comments (92)
Following
No I don't catch your drift... Who is your "friend of a friend", Jane Fraser?
Biden
is Biden Head of IB?
LevFin is picking up wtf
not really. Mostly manufactured stuff... refis, small add-ons. Relatively few new deals
layoffs usually decided in advance enough to be before it was 'picking up'
https://twitter.com/60Minutes/status/1571656567014891521?s=20
0 chance more banks don't do another 1-2 rounds of cuts. They're coming to the realization that the market isn't coming back in the 2H....
That's because everyone is defaulting like there's no tomorrow.
What desks are safe?
Maybe investment grade? Hard to tell. Maybe the question isn't what desk but what rank…
fingers crossed cuts aren't as brutal as some other banks :(
It's going to be brutal. Citi stock is being outperformed by the other big 3 competitors and IB at Citi is way behind
Citi stock has always traded low since 2008... That's not a reliable metric to point to how deep lay-offs are going to be. Citi performs higher than BofA, yet BofA's lay-offs haven't been as deep-cutting as MS or GS. I don't know if IB at Citi is "way behind", they seem to be doing fine in terms of number of deals and volume and league tables + financing capabilities they always perform well in. I'm frankly surprised Citi is laying off more people, and if anything these round of cuts I don't think will be "brutal". They barely laid off that many people last round anyway.
Agree, Citi's stock has never done well and has long traded below peers... their issues are more structural/the bank undergoing a massive transformation rather than needing to cut IB juniors. I doubt they are going to come in and slash and burn with massive reductions, perhaps some more trimming of a few % of staff but that's been across every bank
I see, what are some of the structural problems?
woman ceo
path less traveled
- Business mix is not strong
- Lots of legacy regional businesses that are a distraction, not profitable, and result in big charge offs i.e. South Korea, Russia, Mexico
- Multiple regulatory issues that keep popping up due to lack of tech and risk investment
- strategy has been rather unclear for several years
- their not-amazing profitability targets are years in the future and dependent on great markets
Look at their 2022 investor day if you want more detail (also an interesting watch for incomings who want to learn about the direction of the bank). They are pretty clear that they know it's a turnaround. Not to say Citi IB is bad at all, that's a strong franchise of theirs, but the company as a whole has several very clear reasons to trade behind a JPM or BofA
Many folks to be cut at all levels
Do we know when the layoffs will begin? What magnitude?
Are Citi tech groups safe?
No pain no game.
You tell me how tech is doing these days boyo
Varies. Tech layoffs lately have been more operational as opposed to software engineers. They are still hiring for senior engineers, but not necessarily entry level. Company is on a hiring freeze, but I know that banks and other financial institutions have their own tech division that is different from that of software/tech like MAANG.
Not more than 50 employees in NY at least. Legally Citi would need to post a warning here
https://dol.ny.gov/warn-notices
So just a trim then
True that it does need to be posted, but doesn't need to be pre-posted since they give significant severance. Firing people and giving them 8 weeks (or whatever) severance counts as the warning - you just don't work out your notice period in a white collar job like you would in a manufacturing job. The point of the rule is you can't do massive layoffs and say "this is your last paycheck" with no warning or notice period.
The GS one was dated the day layoffs were announced/executed, for example.
Seems inevitable, and this applies to most banks.
Haven't heard anything concrete yet, but there have been suggestions by seniors over the last few months that it's inevitable.
Some groups have been doing absolutely nothing for the last 6 months while others are getting crushed and unable to add headcount lol.
Expecting Lev Fin, ECM and GAM to be hit, but wouldn't be surprised if some of the quieter coverage teams have layoffs as well.
Associate and N3 promos were sparse across the board this year so imagine most of the layoffs will be at the VP/D/MD level.
Forgive my ignorance, but what's GAM and N3?
What groups are being "crushed" btw
GAM = Global asset managers coverage. Aka sponsors.
N3 promotes = analyst 2s that got an offer to return for third year.
think O&G, industrials, and Comms are busy. Have anecdotally heard software group is busy, but also heard there's a good amount of senior fat in tech coverage.
GAM (Global Asset Managers) is what we call our sponsors coverage team and N3 is 3rd year analyst.
Power, natural resources, industrials and FIG have all been really busy.
Currently at Citi. There is a serious amount of fat at the VP/D level. There is one D in my coverage group that comes into the office at 10, sits in his office / stares at his phone, leaves at 4. No meetings, no calls, no projects.
couple VPs that are close to the same. Delegate literally everything, less than one project per week.
we have one new MD that isn't doing Jack shit and sounds like a moron on client calls. All the above are toast in the next layoff imo.
This sounds like chems haha
Sounds like the senior M&A bankers at my bank right now. Waiting around until it's an acceptable hour to go home.
lol, not at at Citi, but can confirm this is the life right now.
In your mind, what should a VP delegate vs do themselves?
What are FT return offers looking like for the intern class?
-
Not everyone should expect to receive a FT offer …
Houston about to get wrecked.
jane hates oil and gas for the ESG issues
Then she hates the only group that is consistently showing up in the 'Citi Wins' emails
Are the D&I emails still being shoved down your throat?
How busy are people at Citi? Guy I know there seems to be drinking every weekend
that's because he has to work at citi, id do the same if i were in his shoes
Touché
.
What the fuck are you talking about?
.
Better not layoff the people I am working with
Whatever C calls their TMT capital markets group… that group I bet is getting completely gutted
Because it's tech related with weak deal flow or they are no Bueno?
When did they stop calling it FEG?
-
Lazard had a team they called P-FAG up until a few years ago.
Literally pronounced Pee-Fag
Citi should focus more on O&G. Why?
Drilling oil will reduce energy costs
Reduced energy costs will reduce inflation
Reduced inflation will reduce rates
Reduced rates will boost stocks
Boosted stocks will boost economy
Boosted economy will boost job growth
Boosted job growth will reduce layoffs
#DrillBabyDrill
This actually makes sense to me
How do analyst layoffs happen? Do they cut underperforming analysts right before bonuses?
I think analyst 2s are shown the door and analyst 1s get the pink slip
What's a pink slipper
What's the difference?
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