Citigroup, the owner of Citibank among other banking properties and one of the largest financial institutions in the country, has announced so many layoffs and cutbacks recently that it’s getting hard for anyone to keep track.
Yesterday the bank announced it will be laying off ‘thousands’ of employees in its investment banking division. All told, 10% of the 65,000-member group will get the axe.
All of this stems from the big sub-prime crisis and mortgage debacle fallout. Meredith Whitney, the biz babe/finance hottie/psycho dominatrix pain mistress, who called out Citi back in the fall of ’07 started the trend of predicting that this ‘Citi’ wasn’t built on a strong foundation. (Ya see what I did there?)
After that melee, Citi fired their CEO and hired the impishly adorable Vikram Pandit to take the reigns. One of his big moves was changing the company’s slogan by instilling the virtues of insomnia.
Since then, there has been a slew of announcements coming from Citi amounting to thousands and thousands of ‘proposed layoffs’. Even the AP is having trouble with all of them:
It was not immediately clear if the reported job cuts would be in addition to cuts announced by Citigroup in April. After reporting a $5.1 billion first-quarter loss, the bank said then it was reducing its staff by 9,000, in addition to the 4,200 job cuts the bank announced late last year.
As you can see, it’s tough keeping up with all this. It also seems like the big ‘C’ doesn’t know which way is up either. 11 months ago, Citi purchased Vikram Pandit’s old hedge fund, Old Lane Partners, for $800 million. Good buy, right? Wrong, more like ‘Goodbye’, because earlier this month that fund closed for good. (Did ya catch that one? I’m on fire today!)
So in conclusion, a summary for everyone trying to keep track of where Citi is at right now: sucking, big time.
AP: Citi To Slash Investment Banking Jobs, June 22, 2008