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: 38

Comment

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

Join HipHop Republican Tv

HHR Presents: URBAN GAME CHANGER

Trump Syria Obama Clinton Rice

ANALYSIS/OPINION:

President Donald Trump would show genius by stopping our military caper in Syria that was stupidly and unconstitutionally begun by President Barack Obama without a congressional declaration of war.

Between 1975 and 2015 — 40 years — the number of Syrian-born terrorists that entered the United States was ...

Al Jazeera Mideast hostage free speech

ANALYSIS/OPINION:

The United States likes to hold itself up as an example to the rest of the world how humankind can flourish when afforded certain freedoms. Among those freedoms is Freedom of Speech. The ability to express ourselves, even if our opinion differs from those in control of the government ...

America anxiety disorder

ANALYSIS/OPINION:

The true voice of America – the spirit of the age – speaks from its lowest register; the bottom, where anxiety dwells.

Everyone reading this is familiar with anxiety; it is part of the human condition. We are fragile, we are mortal, and we know it.  Loss is ...

Trump immigration dreamers DACA DAPA

ANALYSIS/OPINION:

When it comes to immigration policy, the contrast between the Obama and Trump administrations could not possibly be any starker. Whereas President Obama institutionalized lawlessness, President Trump is determined to reverse course and enforce our nation's immigration laws - a welcome change.

Earlier this month, in a memorandum issued ...

© 2017   Created by Pax Stereo.   Powered by

Badges  |  Report an Issue  |  Terms of Service