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Was just about to post on it. IB is predicted to lose 1900. Looks like another cut since the thousand they cut a week ago, and they've lost about 30% of their total workforce since 2007.
online.wsj.com/article/SB10001424127887323501404578161031803891150.html
http://www.forbes.com/sites/steveschaefer/2012/12/05/corbats-first-big-…
http://www.ft.com/intl/cms/s/0/6be18bc0-3ee9-11e2-87bc-00144feabdc0.htm…
IB in general is not fantastic for stability or job security at the moment. USB cut 10,000 jobs 2 months ago, Barclays was predicted to cut 3500 staff (15% of their workforce- in the news 5 days ago - though in Asia), Royal bank of Scotland cut 3500 earlier this year, Credit Suisse was at 5,500 predicted (3500 confirms) as a long term program from last year, and Deutsche Bank, Morgan Stanley and HSBC were also laying people off not to long ago.
It will suit the risk taking nature of bankers perfectly, but the already competitive industry may get more competitive as qualified competent people struggle for the same jobs in a shrinking pool.
"Another prime candidate for cutting: Citigroup's investment bank, which many analysts have said isn't as efficient as those of its rivals. The company said it will make 1,900 cuts there and in transaction services, a unit that serves as a cash handler for large corporations and governments.
"Considering the investment bank represents 60% of Citicorp assets but only 30% of revenue, maximizing efficiency here will likely be a key priority," Goldman analyst Richard Ramsden said in a note to clients in October."
Back office predicted to lose 2300 though (technology and operations), Global consumer banking business will lose 6,200 positions, and IB is predicting 1900 jobs lost. Not sure where the other 600 will come from.
44 Branches across the US to close (84 total worldwide). That's a total 4% of Citigroup's workforce, and they had already closed 3% of their branches worldwide.
Also, some New York jobs are moving to other locations, and they are looking at off-shoring to save more money.
wut
Something I'm finding hard to understand here is the math. So,just over $1bn for 11000 jobs, that's $90k+ each on average as a payoff. I can't think of many commercial banking positions that would get that.
plus benefits, 401k's etc.
Not sure what to think of Citigroup at the moment. As a stock, it has been great (like most banks). But as an investment bank, their performance has been modestly below expectations. I thought they would be able to reclaim the #3 slot behind GS/MS. If I were an investor, I would like to see the investment bank and the retail/commercial side split apart.
While JPM, Barcap, and BofA took the opportunity to expand during the crisis (JPM becoming a legitimate peer to GS/MS), Citi did not. Instead they have seen the slow exodus of their Salomon talent. I had high hopes when they picked up UBS's energy team last year, but this did not represent a turning point for the bank as a whole.
A lot of the cuts are international in a number of branches. Transaction services and retail are the majority of cuts from what's being predicted. Although IB is always at risk. But it doesn't sound like the typical huge IB slashes we've seen in the past.
I think most of these cuts have to do with reducing the size of international market branches.
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