Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Citigroup Plans to Cut 20k Jobs

wsj.com

Post reply on HN
Print view View original

101–110 of 213 posts

Re: Citigroup Plans to Cut 20k Jobs

#101

Post by disgruntledphd2 »

politician wrote: post #97
raziel2701 wrote: post #81

What's going on with all these job cuts all concentrated now? The market is expecting the Fed to start cutting interest rates[0] in March and that has been bullish for the latter half of last year in the stock market. So why are so many companies cutting people? Are the March rate cuts too little too late or do they see that some damage has already been done and they're front running that? Or is it that layoffs is th…

>> The market is expecting the Fed to start cutting interest rates... However: > Just about every time the Fed started CUTTING rates dating back to 1950, the unemployment rate has spiked. [1] pic.twitter.com/DChSRJJdD7

Yeah, because the Fed have a dual mandate so when employment decreases, they loosen financial conditions.

Re: Citigroup Plans to Cut 20k Jobs

#102

Post by mattbrewsbytes »

Analemma_ wrote: post #55
mattbrewsbytes wrote: post #49

[flagged]

There were a whole bunch of layoffs a year ago too and people like you were saying the same thing, and you were wrong. At least wait for the monthly job numbers before you launch into the same tired spiel about the lying media.

I'm mostly making a star wars jedi joke to spark discussion about what is a recession.

Re: Citigroup Plans to Cut 20k Jobs

#103

Post by nradov »

pixl97 wrote: post #69
ptero wrote: post #50

Earlier quoted context omitted.

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 chart…

Come on, stop making up nonsense. Just to pick one example there are numerous single family homes near Cleveland on the market for under $100K.

Re: Citigroup Plans to Cut 20k Jobs

#104

Post by nickjj »

John23832 wrote: post #9
steveBK123 wrote: post #2

Disaster long in the making. The worst performing big bank of the last decade. Stock still ~90% below its 2007 peak, and been flat for last 10 years.

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 never had an account anywhere else but Chase (run through JPM) is pretty good, independent of branding.

I have no affiliation with them but at the branch I goto there's always a free ATM inside for quick things, they make it easy to schedule meetings for more complex tasks and the bankers who have their own cubicle tend to be knowledgeable (I've encountered a couple of them over the years).

It's super easy to reach them too, and this is with a basic checking account only. Their checking account is free with no penalties as long as you direct deposit $500 / month OR keep $1,500 in there, for most folks on this site the first option means you only need to keep the bare minimum in there to pay your bills.

I don't care about the lack of interest. Most trading platforms will give you 4%+ which IMO has a nice advantage in that you can stick idle cash in there (untraded) and collect risk free interest and you can quickly transfer it back to your bank account if you need it. It's a reasonable solution for an emergency fund, but it also doubles as a way to instantly put money into the market if an opportunity strikes.

Re: Citigroup Plans to Cut 20k Jobs

#105

Post by Sohcahtoa82 »

rednerrus wrote: post #44

This generation of CEOs will go into the history books as the worst.

My admittedly naive opinion is that the current generation of CEOs have decided to define a company's growth by headcount rather than revenue or profit.

They don't put enough consideration into whether they need more people. They adopt the Project Manager mindset of thinking 9 women can produce a baby in 1 month if they work together.

Just because 20 engineers produced a product that created a product that produces $100M ARR doesn't mean that 100 engineers will produce a product that produces $500M ARR.

Re: Citigroup Plans to Cut 20k Jobs

#106

Post by zebnyc »

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.

Costco executive card

Re: Citigroup Plans to Cut 20k Jobs

#107

Post by politician »

disgruntledphd2 wrote: post #101
politician wrote: post #97

Earlier quoted context omitted.

>> The market is expecting the Fed to start cutting interest rates... However: > Just about every time the Fed started CUTTING rates dating back to 1950, the unemployment rate has spiked. [1] pic.twitter.com/DChSRJJdD7

Yeah, because the Fed have a dual mandate so when employment decreases, they loosen financial conditions.

The "dual mandate" was established by the Federal Reserve Reform Act of 1977, whereas the data shows this phenomenon goes back over 20 years earlier. How then could the dual mandate be the cause of the effect?

Re: Citigroup Plans to Cut 20k Jobs

#109

Post by konschubert »

ok123456 wrote: post #68
yyyfb wrote: post #54

Earlier quoted context omitted.

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.

Median real wages are rising, too.

And personally, I’d rather be a delivery driver than be unemployed.

I think there is a correction in sectors that had been inflated by cheap money. The rest of the economy is doing pretty well.

Re: Citigroup Plans to Cut 20k Jobs

#110

Post by rgbrenner »

preommr wrote: post #96
rgbrenner wrote: post #85

Earlier quoted context omitted.

This is everyone's last chance to trim their roles before the rate cuts. Once the rate cuts occur, the bull market will return, and companies doing layoffs (sending the message they are not experiencing growth) will be punished by the market.

> bull market will return Return? It's been 'line only ever goes up' since November.

Expectation of a bull market. Right now companies arent being penalized for layoffs because there's some uneasiness about the impact of the feds actions. A lot of people expected a recession from pushing interest rates this high, but it hasn't happened. Once it's clear that there will be no recession from the fed's actions (ie: when rates drop), CEOs will be fully responsible for their company's poor performance in the eyes of the market.
Post reply on HN