Citigroup “re-sizing” investment bank business
This week, Citigroup will begin to dismiss roughly 6,500 workers from its investment bank division.
Record write-downs and mounting losses have led Citigroup to engage in several cost cutting measures. The company has lost roughly $15 billion in the past two quarters. The pending job cuts will reduce Citigroup’s investment bank division by about ten percent.
Citigroup released a statement claiming that market conditions have facilitated a need for “re-sizing” its IB division.
I am guessing that “re-sizing” is the new euphemism for downsizing. According to placement consultants Challenger, Gray & Christmas, the financial sector has lost about 66,000 jobs this year. So, Citi is not the only bank in the midst of a “re-sizing” effort.
Shares of Citi are re-sizing too, down about 3 percent on today’s news.
Tags: citigroup, layoffs, resizingRelated Stories
POSTED IN: Corporate, Earnings, Market, News, Uncategorized
6 opinions for Citigroup “re-sizing” investment bank business
Dan Waters
Jun 23, 2008 at 2:24 pm
Finance has lost 66,000 jobs this year and yet we are Finance majors filling a summer course, shows how much we know. Hopefully Citi will have over estimated their losses and find room for some write-ups and rehiring by the end of this fall-out, after all no one knows exactly how much any of this defaulting paper is really worth.
Gregory Pontrelli
Jun 23, 2008 at 9:39 pm
Thats not including the 9,000 employees let go due to “resizing” since March.
They are cutting seniors as well.
I wonder how many of them are wishing they had gone to work for Goldman Sachs.
Jeremy McElroy
Jun 24, 2008 at 3:45 pm
I was just going to make a comment similar to the one above. Financial industry losing 66,000 jobs so far this year is kind of upsetting considering mostly everyone in our class are Finance majors. Hopefully Citi can bounce back from this horrible time they have seemed to run into and turn it around for them and the financial world itself…
moneypenny
Jun 26, 2008 at 6:03 am
Tough times for the financial industry.I changed careers in 2002 when the financial world went though another tough time. Citi is a huge behemoth
so job cuts were inevitable. Choosing the right bank to work for has become a lottery game.
My post on tough times ties in to this one.
Steve Farrington
Jun 26, 2008 at 5:04 pm
B of A forced to cut 7,500 jobs thanks to their acquisition of Countrywide.
patrick king
Jul 8, 2008 at 3:22 am
There is probably no end in site to the job cutting. Even after the cost cutting consideration, where are profits and growth going to come from in the future? No one is going to want these products(cdo, cds) for a while so what are the investment banks going to be selling people in their place? They’re going to have to invent another esoteric product, make it relatively main stream and have the purchasers come back to the table.
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