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Citigroup Plans to Cut 20k Jobs

wsj.com

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Re: Citigroup Plans to Cut 20k Jobs

#151

Post by password54321 »

matwood wrote: post #74
mattbrewsbytes wrote: post #49

[flagged]

A healthy economy shouldn't go straight up, and neither should healthy companies. Adjusting the workforce is a normal course of business. The big media news early in the week started with Google having a lay off which eventually turned out to be ~1k people. It sucks for those people, but is < 1% of the workforce. It's not even something that should have made big news, but everyone is looking for anything to fit a rec…

You are really cherry picking to bring your point across. Google was not the only layoffs this week and last year we saw a dramatic increase in number of layoffs in tech from prior years. It is still hard to predict how this trend will continue but healthy is not the word I would describe things at the moment.

Re: Citigroup Plans to Cut 20k Jobs

#152

Post by emptysongglass »

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.

Except for Hasbro, apparently.

Re: Citigroup Plans to Cut 20k Jobs

#153

Post by emptysongglass »

c0pium wrote: post #46
rednerrus wrote: post #44

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

Robber barons who hired the Pinkerton detectives to kill their striking workers would like a word.

For what it's worth, Hasbro did hire Pinkertons to show up at an innocent man's house last April.

Re: Citigroup Plans to Cut 20k Jobs

#154

Post by robohoe »

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.

One of my past employers made a 10% cut right after Thanksgiving and before Christmas holidays. Ouch.

Re: Citigroup Plans to Cut 20k Jobs

#155

Post by nostrademons »

politician wrote: post #107
disgruntledphd2 wrote: post #101

Earlier quoted context omitted.

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?

They had an informal dual mandate to maximize employment and minimize inflation before then, but the purpose of the Federal Reserve as created was to preserve financial stability, avoid financial panics, and maximize employment. In other words, they had half of the dual mandate, the half that involved injecting money when times were bad to stabilize the system. The government codified the inflation mandate in response to the 1970s inflation.

The phenomena of dropping rates when a recession is impending is congruent with the "maximize employment" portion of their mandate, which predated 1977. Indeed, their failure to do this in 1929-1930 led to the Great Depression. Ben Bernanke's pre-Fed-chair academic career was devoted to studying that.

Re: Citigroup Plans to Cut 20k Jobs

#156

Post by dortmunder13 »

hotpotamus wrote: post #84
dmoy wrote: post #76

Earlier quoted context omitted.

BoA has this, if you have at least $100k - a 2.625% cash back card, and with Merrill also has competitive HYSA (last I checked, 0.5% higher than Citi). BoA can be great if you have money, but sucks if you don't.

What do you mean have at least $100K? Like in one of their savings accounts? You can get 5% APY right now from Wealthfront in their savings, so you'd have to forgo a lot of interest to get that extra 0.625% over Citi's credit card.

It's 100k in combined assets at BofA / ML, so if you have 100k in a brokerage account (or an IRA or a HSA or ...) you're eligible. It's not restricted to the super low yield savings accounts.

Re: Citigroup Plans to Cut 20k Jobs

#157

Post by nobleach »

konschubert wrote: post #115
rednerrus wrote: post #44

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

Because they overhired during the cheep money spree?

"Overhired" is not always the best way to describe "hired with intentions to do things while capital was cheap". I saw a bunch of startups and larger that really did intend to build things. When hard times hit, some shut down. Some cancelled any lofty project that wasn't already committing to their bottom line.

So the solution is, "never hire headcount to work on a project that might not be financially viable in a recession"? Help me see another solution here.

Re: Citigroup Plans to Cut 20k Jobs

#158

Post by AlexErrant »

wolverine876 wrote: post #147

The primary concern is the people who have lost jobs, and for some, careers and dreams. Some of them are probably reading HN today. But for the economy, it could be a good thing: Talent moving from moribund, unambitious, lower-return businesses to dynamic, often new ones that are hiring and expanding for an optimistic future. (I say unambitous because they are, at least in this situation, cutting costs and talent rat…

How does this reconcile with "enshitification" as popular platforms with millions of users try to become profitable by removing features and paywalling access? My understanding was that the zero-interest era was the time of optimism and building new cool things.

Re: Citigroup Plans to Cut 20k Jobs

#159

Post by panphora »

rgbrenner wrote: post #85
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…

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.

> Once the rate cuts occur, the bull market will return

Rate cuts often signal an impending recession, not a bull market, as historical data shows.

The Federal Funds Effective Rate chart illustrates how recessions (marked in gray) align with periods of rate reductions.

https://fred.stlouisfed.org/series/FEDFUNDS

Re: Citigroup Plans to Cut 20k Jobs

#160

Post by wnc3141 »

wolverine876 wrote: post #147

The primary concern is the people who have lost jobs, and for some, careers and dreams. Some of them are probably reading HN today. But for the economy, it could be a good thing: Talent moving from moribund, unambitious, lower-return businesses to dynamic, often new ones that are hiring and expanding for an optimistic future. (I say unambitous because they are, at least in this situation, cutting costs and talent rat…

I personally don't think its bad if firms just find excuses to keep people on payroll, regardless of the strategic significance.
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