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Citigroup Plans to Cut 20k Jobs

wsj.com

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Re: Citigroup Plans to Cut 20k Jobs

#61

Post by lotsofpulp »

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

So that Chase can earn more money from the 80% of people who can’t be bothered or have insignificant funds to move around.

Re: Citigroup Plans to Cut 20k Jobs

#62

Post by cjbgkagh »

ses1984 wrote: post #56
NegativeLatency wrote: post #51

Earlier quoted context omitted.

Microsoft and Google are pretty similar IMO, since both have: a browser, a search engine, an operating system, have or have tried to have a phone, both do some amount of hardware, and both also have cloud platform offerings.

One makes money selling software and one makes money selling ads.

I think that distinction will shrink over time as Microsoft sees ads as the future of their revenue growth.

Re: Citigroup Plans to Cut 20k Jobs

#63

Post by toomuchtodo »

mattbrewsbytes wrote: post #49

[flagged]

There is no recession, enterprises are struggling to obtain profits from zero interest rate macro that is unattainable in the current macro. Unemployment will remain low due to structural demographics (10k Boomers retiring per day, 3.65M/year, 1.8M people over the age of 55 die every year, ~1/2 of which are in the labor participation rate). A healthy economy creates ~1-3M jobs/year.

So there will be churn as long as the labor arrangement in the US continues to be tenuous and management struggles to achieve shareholder demands. Labor market might become even more favorable if the death rate or retirement exit rate picks up for whatever reason. Workers 65+ on Medicare and a bit older than that on Social Security have a stronger position to operate from in the labor market.

ok123456 is correct [1] that labor is not super fungible (white collar->Flying J clerk), but importantly, while there is uncertainty, this is not early 2000s or 2007-2008 financial crises from a labor market softening perspective.

[1] https://news.ycombinator.com/item?id=38970052

(about 7M people work in finance and insurance in the US as of 2023, these cuts are ~0.003% of the industry)

Re: Citigroup Plans to Cut 20k Jobs

#64

Post by steveBK123 »

John23832 wrote: post #42
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.

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 becaus…

Citi has been the gang who can't shoot straight since the 80s.

Re: Citigroup Plans to Cut 20k Jobs

#65

Post by oldpersonintx »

ptero wrote: post #50
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…

[dead]

Re: Citigroup Plans to Cut 20k Jobs

#66

Post by bushbaba »

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.

I never got why people choose citi. They don’t offer best lending rates, they don’t have a vast ATM network, their credit card benefits are worse than chase/amex, etc. seems they aren’t really amazing at any particular segment but meh in all.

Re: Citigroup Plans to Cut 20k Jobs

#67

Post by [deleted] »

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.

[deleted]

Re: Citigroup Plans to Cut 20k Jobs

#68

Post by ok123456 »

yyyfb wrote: post #54
mattbrewsbytes wrote: post #49

[flagged]

Unemployment still pretty low. https://www.bls.gov/charts/employment-situation/civilian-une... The environment is much less forgiving of management mistakes, but someone's layoffs can also be a competitor's hiring opportunity.

The laid-off email job corporate worker isn't going to take a job for $15/hr at the Flying J unclogging toilets. You can't use the total national average unemployment rate, which has issues of its own, to say the economy is healthy. In the same way, the stock market indices aren't helpful either beyond catastrophic values.

Re: Citigroup Plans to Cut 20k Jobs

#69

Post by pixl97 »

ptero wrote: post #50
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…

Unemployment is historically low, but costs are historically high. In 2008 we saw that the state change from good to bad can happen rapidly and contagiously between industries.

> They can also downsize and/or move to an area with lower cost of living.

No, not really. There are simply no housing units available in the US to do that. All new housing is huge 2000sq/ft +. In addition housing prices are just off the charts for small houses. Your low cost of living places (I have family that lives in places like that) still want $250,000+ for a house that was around or under $100,000 less than a decade ago.

Re: Citigroup Plans to Cut 20k Jobs

#70

Post by purplerabbit »

bushbaba wrote: post #66
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.

I never got why people choose citi. They don’t offer best lending rates, they don’t have a vast ATM network, their credit card benefits are worse than chase/amex, etc. seems they aren’t really amazing at any particular segment but meh in all.

They’re the only mega bank with both a 2% cash back card and a competitive HYSA
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