I had an appointment at my dentist for my semi-annual cleaning this morning, and the hygienist tuned the television to MSNBC and Don Imus, who is having some sort of problem with the Rutgers basketball team. It was the topic for the entire morning.
I noticed on the crawl on the bottom of the screen that Citi will be laying off 10,000 employees. Looking into it further, I see that the cuts are due to expense reductions. While other companies in the sector have been increasing profits and decreasing expenses, Citi hasn’t been managing as well.
Citigroup’s consumer and credit card operations will bear the brunt of the job losses, but the cuts will also extend to its other main businesses, including its investment bank.
10,000 will be directly laid off, but Citi expects 14,000 additional positions to be lost to attrition or relocation.
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Citibank is just so big, but it seems Bank of America in the last couple years has just been better at executing strategies on the consumer product end. That said I love my citibank checking account – best bank account I’ve ever had. On the investment banking side, Citi just can’t compete with the likes of Goldman Sachs or Morgan as they can’t seem to attract the best talent. Citi’s credit card offerings are very uninspiring these days. Not bad but I would think they’ve been losing marketshare relative to other credit card companies. I think in the long run Citibank will get it’s act together. The funny thing about layoffs is that it’s a problem with management that’s usually the cause of the problem, but it’s the workforce that suffers.