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Citigroup Plans to Cut 20k Jobs

wsj.com

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Re: Citigroup Plans to Cut 20k Jobs

#131

Post by octobus2021 »

yyyfb wrote: post #83
ok123456 wrote: post #68

Earlier quoted context omitted.

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.

I don't claim that it can be used to say the economy is healthy. I take issue with OP's claim that large layoffs necessarily imply recession. Unless you know that the laid off workers aren't rehired by a competitor, you don't know if the layoff isn't just an outcome of competition. The national unemployment rate is a proxy for it. At least at the first order, if a large number of people are being laid off (and this i…

Fun fact. If I'm laid off from my corporate job and after weeks of searching start driving for Uber or delivering pizzas, I am considered employed in the U3 (the unemployment rate most often reported). I would be excluded in U5 rate (they are referred to as "marginally employed") which is about 1% higher.

https://www.bls.gov/news.release/empsit.t15.htm

Another fun fact. If I work 2 jobs at 2 different employers I'm counted as 2 employed people.

https://www.bls.gov/web/empsit/cesfaq.htm

There's some much noise in "unemployment rate" that I would argue it's essentially useless for most purposes.

Re: Citigroup Plans to Cut 20k Jobs

#132

Post by JackFr »

tootie wrote: post #93
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…

For one, this is not an announcement of 20K layoffs. It's an announcement of planned reduction in headcount as of 2026. Also, it's global workforce, not US. Also, go look at the BLS JOLTS data. Job separations happen by the millions every month even when we see net job growth. Seeing headlines about job losses at a particular company are only news as it pertains to that company. It doesn't imply a national or global…

Also note that 20K jobs is 6-7% of Citi’s workforce.

Re: Citigroup Plans to Cut 20k Jobs

#133

Post by [deleted] »

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…

[deleted]

Re: Citigroup Plans to Cut 20k Jobs

#134

Post by [deleted] »

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.

[deleted]

Re: Citigroup Plans to Cut 20k Jobs

#137

Post by asciimov »

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…

New year and quarter for businesses, gotta show you made more money by spending less on salaries.

They can fire now and still be covered by "the market made us do it".

Fire now, and rehire for less in the next quarter or two.

The US needs better protection for workers. If a corp has to fire 20k, that is a leadership problem and they should go too.

Re: Citigroup Plans to Cut 20k Jobs

#139

Post by cjbgkagh »

nilptr wrote: post #122
cjbgkagh wrote: post #62

Earlier quoted context omitted.

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

Microsoft sees ads as an add-on to existing revenue streams. It's core is software and software services. They couldn't be more different other than both being tech companies.

People show up for their salary, they work hard for their bonus. The core part of the revenue is taken for granted as they focus on developing new parts, specifically the ads part. It allows for an up-and-coming exec to say "I made X for Microsoft, you should pay me Y% of X". So even though it would only account for a small % of total revenue it would dominate the thinking. It's how ideas such as ad supported Windows happen despite the long term deterius effect that would have on the core business.

Re: Citigroup Plans to Cut 20k Jobs

#140

Post by wolverine876 »

asdajksah2123 wrote: post #33
ddano wrote: post #24

Interesting that in beginning of January a lot of the job cuts are being announced, I'm sure decisions were made previous months. Is it because of the time to recover for potential backslash in the quartarely reports or any other reason?

Companies usually avoid laying off people before the holidays. My company did that once and despite not being a company that's ever really in the news, made the news for that reason.

Many companies do cut people before the end of they fiscal year, to avoid tax consequences and budgeting issues in the new year.
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