Citigroup to cut 11,000 jobs, take $1 billion in charges

[mahatmakanejeeves]

Source: Reuters

Wed Dec 5, 2012 9:19am EST

(Reuters) - Citigroup Inc will eliminate 11,000 jobs worldwide, about 4 percent of its total staff, in a move to save as much as $1.1 billion a year in expenses, the company said on Wednesday.

The move will initially result in pre-tax charges of $1 billion to fourth-quarter earnings, the company said in a statement.

The move is the first major action to restructure the company since directors named Michael Corbat chief executive officer in October after becoming impatient with former CEO Vikram Pandit.
....

Analysts have expected an action of this sort since Corbat was introduced as CEO by Chairman Michael O'Neill. O'Neill is known in the banking industry for shrinking companies to eliminate businesses that are not earning satisfactory returns.

Read more: http://www.reuters.com/article/2012/12/05/us-citigroup-jobs-idUSBRE8B40NY20121205

[OverDone]

1. Dailyjobcuts.com

Its called we are in a recovery, this is a normal process.........

We are far from a real recovery

http://www.dailyjobcuts.com

[108vcd]

2. my question is

what do they need to save $1 billion in expenses for that is worth 11,000 people losing their job?

greed is capitalisms pitfall

[randome]

3. I was laid off from Citigroup five years ago.

They had a VERY generous severance package. I'm sure there's more to the billion dollars than that but they did treat their employees well. At least back then. I would think much of it is departmental restructuring and consolidating offices, also.

[SoapBox]

4. So I'm driving and hear about this today...

KNX 1070 (CBS) traffic channel, in Los Angeles...

BUT, there was a complete FAILURE to mention the payouts to EXECUTIVES! Gee, go figure!


"Wall Street Bank Cuts 11,000 Jobs After Paying Ousted Executives $14 Million"

...snip...

Citigroup announced on Wednesday that it will cut 11,000 jobs, or 4 percent of its workforce, in an effort to trim expenses.

The moves comes one month after Citigroup paid out nearly $14 million to two former executives, CEO Vikram Pandit and Chief Operating Officer John Havens, who were ousted for poor management. The Citigroup board forced Pandit out, “after a series of missteps this year left some directors feeling that the company wasn’t being managed effectively and that the board wasn’t kept adequately informed.”

Under Pandit and Havens, Citigroup lost 88 percent of its stock value. Still, the executives walked away with generous pay packages:

More at:
http://thinkprogress.org/economy/2012/12/05/1285501/citigroup-jobs-bonuses/