HipHop Republican Tv

The Official HipHop Republican Internet Television Channel

Citigroup announced on Wednesday that it would cut 11,000 jobs, reducing its work force by roughly 4 percent in an effort to cut costs

CitigroupCitigroup announced on Wednesday that it would cut 11,000 jobs, reducing its work force by roughly 4 percent in an effort to cut costs.

Under the reduction, 1,900 jobs will be eliminated in the institutional clients division. Another 6,200 positions will be removed from the bank’s consumer banking business, along with 2,600 jobs in the operations and technology group.

Since 2007, the bank has slashed its workforce by 33 percent, leaving it with about 250,000 employees today

The reductions at Citigroup come after the bank’s powerful chairman, Michael E. O’Neill, engineered the ouster of its former chief executive, Vikram S. Pandit, and named a handpicked successor, Michael L. Corbat, according to several people close to the bank.

Since the power change in October, which stunned Wall Street, there has been unease throughout the upper ranks of Citigroup, according to the people. Some within the executive ranks have been worried that Mr. O’Neill, acting through Mr. Corbat, would quickly pare down the bank.

Michael Corbat, 52, the new chief executive of Citigroup, led Citigroup's "bad bank," which sold off troubled assets.Jason Kempin/Getty ImagesMichael Corbat, 52, the new chief executive, led Citigroup’s “bad bank,” which sold off troubled assets.

“These actions are logical next steps in Citi’s transformation,” Mr. Corbat said in a statement. “While we are committed to – and our strategy continues to leverage – our unparalleled global network and footprint, we have identified areas and products where our scale does not provide for meaningful returns.”

The bank said it would take a pretax charge of roughly $1 billion in the fourth quarter and $100 million of related charges in the first half of 2013. In the third quarter, Citigroup reported a profit of $468 million, or 15 cents a share.

When Mr. Corbat took on the role of chief executive in October, he told analysts he intended to continue a strategy at Citigroup of focusing on the bank’s core businesses.

The cuts were made after exhaustive meetings in November involving virtually every head of the bank’s businesses at Citigroup’s headquarters in New York, according to several senior executives at the bank. The mandate was to find ways to reduce costs.

Earlier this week, Mr. Corbat briefed the board about the job cuts.

Citigroup has had a turbulent recent history, after teetering on the brink of collapse during the financial crisis and receiving a $45 billion lifeline from the federal government. After emerging from the financial crisis, it has been sharply reducing its expenses and trying to shed even more troubled assets in an effort to restore the bank to its past profitability.

But those efforts have been dogged by missteps and turmoil. In March, for example, the Federal Reserve dealt a stunning blow to Citigroup when it scuttled the bank’s plans to raise its dividend or increase share buybacks. Shortly afterward in April, the bank’s shareholders, in a rare move, voted against a $15 million pay package for Mr. Pandit.

Executives at Citigroup are still struggling to rein in the bank’s business and work through a mass of bad assets in its Citi Holdings unit.

When Mr. O’Neill joined the board in 2009, he was intent on reducing costs in the bank’s vast operations. Mr. O’Neill has had practice turning around an underperforming bank, having steered Bank of Hawaii to profitability earlier in his career.

His plans, according to several former colleagues, typically involve ruthless cost-cutting, often resulting in bank branches being closed. In its announcement on Wednesday, the bank said 84 branches worldwide would be closed.

The bank’s shares rose about 6 percent by afternoon.

http://dealbook.nytimes.com/2012/12/05/citi-to-cut-11000-jobs-and-t...

Views: 33

Comment

You need to be a member of HipHop Republican Tv to add comments!

Join HipHop Republican Tv

HHR Presents: URBAN GAME CHANGER

JUDSON PHILLIPS: The big loser in the GOP Debate: Republicans

On Saturday night, seven Republican hopefuls gathered for the last debate before the New Hampshire primary on Tuesday.

The media immediately jumped all over the results.  New Jersey Gov. Chris Christie was proclaimed a winner. Sen. Ted Cruz, who brought the room to a powerful silence as he told the ...

W. SCOTT LAMB: Trump drops f-bombs in New Hampshire

When in Iowa, full of Evangelicals as it is, talk as Iowan-Evangelicals do.

But if you're in New Hampshire now and you're Donald Trump, apparently you can start letting the f-bombs rip.

From video and an article at CBSNews.com:

"And you can tell them to go f**k themselves," Donald ...

W. SCOTT LAMB: No girly man socialism

Hearing news today that former California Governor Arnold Schwarzenegger endorsed his friend John Kasich for President got me thinking about some of the high points of the Governator's political career. No, I don't mean his home-wrecking infidelities. I'm referring to his stellar speech given at the 2004 ...

TIM CONSTANTINE: The Super Bowl, not socialism

Super Bowl Sunday, that uniquely American event, is upon us again. Friends and family will gather around the television on Sunday to absorb the game, the advertisements, some unhealthy food and probably more than one drink. About 110 million Americans will undertake this annual ritual. Roads and stores will be ...

© 2016   Created by Pax Stereo.   Powered by

Badges  |  Report an Issue  |  Terms of Service