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Citigroup Plans to Cut 20k Jobs

wsj.com

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Re: Citigroup Plans to Cut 20k Jobs

#41

Post by onlyrealcuzzo »

thiago_fm wrote: post #21

They do an outstanding job in mismanaging money. Surprised they are only cutting that much. They are on their way to become a new credit suisse, hopefully this helps to change that course. If you are interested in this subject, compare it to other big banks like JPMorgan Chase, Bank of America etc. The difference is abysmal.

Compare it how?

Isn't Citi as different from Chase bank as Microsoft is from Google?

Sure - they are both "financial" companies just like Microsoft and Google are both "tech" companies.

Re: Citigroup Plans to Cut 20k Jobs

#42

Post by John23832 »

dtnewman wrote: post #23
John23832 wrote: post #9

Earlier quoted context omitted.

In America. The gap between JPM and Citi is incredible. Part of JPM's success is that it has basically been deemed "America's Bank" by the government, but the mismanagement at Citi is tangible too.

I worked at JPM in investment banking. At least on the IBank side, it was an incredibly well run company. I’m not gonna say there’s no bureaucracy there, but for a company with 200k+ employees it ran very efficiently. And they have always been relatively conservative, not taking on the riskiest bets that some of their peers did, which puts them into a very strong position to take advantage of downturns.

Oh I wasn't talking down about JPM. I actually worked there for a few in the Private Banking space (as a Software Engineer). Great bank, but they also have has the wind at their back in certain situations (being gifted First Republic in the latest regional banking crisis. FR just had a liquidity crisis. Functionally it was fine. JPM got a steal).

Citi on the other hand hasn't had those options/gifts... largely because of prior mismanagement. I think they're only up 10% in the last 10 years or something crazy like that.

Re: Citigroup Plans to Cut 20k Jobs

#43

Post by mupuff1234 »

synergy20 wrote: post #40
dtnewman wrote: post #23

Earlier quoted context omitted.

I worked at JPM in investment banking. At least on the IBank side, it was an incredibly well run company. I’m not gonna say there’s no bureaucracy there, but for a company with 200k+ employees it ran very efficiently. And they have always been relatively conservative, not taking on the riskiest bets that some of their peers did, which puts them into a very strong position to take advantage of downturns.

why chase still does 0% for saving and checking,which forces me to transfer most of my money to fidelity

You could also just buy VUSXX (or similar) through chase.

Re: Citigroup Plans to Cut 20k Jobs

#45

Post by hn_throwaway_99 »

GreedClarifies wrote: post #37
denimnerd42 wrote: post #16

Earlier quoted context omitted.

I work at a similar bank. We have ~100 employees dedicated to mainly one regulator. There are hundreds of regulators worldwide. Of course there is some overlap in functions so its not 100s*100 but... running a bank is a hard business.

Banking in the modern age is a compliance business. It is strange and horrible that it is become like that, but that's where we are. More sectors than one would think are primarily compliance businesses.

> It is strange and horrible that it is become like that, but that's where we are.

Given that in very recent times we got to experience what happens when people handling money completely ignore regulations, I'm quite happy banks are "compliance businesses".

Banks should be boring businesses focused on taking deposits, making loans and other variations of that sort of capital allocation. Whenever a bank talks about "new financial innovations!", run for the hills because it's invariably a way to separate customers from more of their money.

Re: Citigroup Plans to Cut 20k Jobs

#47

Post by uuddlrlrbas »

TuringNYC wrote: post #19
Irishsteve wrote: post #15

Earlier quoted context omitted.

Citi used (And maybe still are not sure) to be the biggest retail bank in the world. I'm not sure how exactly that was quantified but I'd assume its related too phsyical footprint. If thats the case I could see mid and back office functions ballooning

As a retail and business customer of both Citi and Chase, there is no comparison. It would be illogical to use Citi given how great Chase's service is. While there are probably many factors, you cant be that comparatively bad for a competitive and fungible service -- and expect no business consequences.

Chases service is fine but their savings interest rates are laughable. At least Citi's is 4.35% right now vs 0.01% for Chase.

Re: Citigroup Plans to Cut 20k Jobs

#48

Post by nly »

punkbit wrote: post #29

Housing is extremely expensive. I wonder how people pay rent, mortgage, and other expenses with so many layoffs.

I got laid off this week.

Plan on switching the mortgage over to interest payment only for 6 months to help cash stretch.

Legislation came in the UK to help with this last year. It's called the "Mortgage Charter"

Re: Citigroup Plans to Cut 20k Jobs

#50

Post by ptero »

punkbit wrote: post #29

Housing is extremely expensive. I wonder how people pay rent, mortgage, and other expenses with so many layoffs.

I am not trying to sound flippant, but layoffs happen, and especially at companies that are not doing well (and Citigroup is not managing money well) they are normal.

Then, those working at Citigroup are likely to get some form of severance. While I do not know the exact composition of the layoffs I suspect that many of those are well paid and have comfortable cushion. Furthermore, US economy is still chugging along and the unemployment is low by historical standards, so a significant portion of those laid off will likely find another job. They can also downsize and/or move to an area with lower cost of living.

None of this is pleasant, but it is not the end of the world. My 2c.

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