Greg Bell
Senior Member
- Joined
- Jul 7, 2006
- Professional Status
- Gvmt Agency, FNMA, HUD, VA etc.
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- Louisiana
Citi Bank says fire everybody and move to India..
March 26, 2007
Citigroup Plans to Shed Thousands of Jobs
By HEATHER TIMMONS and ERIC DASH
NEW DELHI, March 26 — Under pressure from shareholders, Citigroup is planning to shed thousands of jobs and sharpen its focus on its operations outside North America.
The colossal bank will get most of its growth from its international operations, chief executive Charles O. Prince told thousands of employees in India today, as he wrapped up a tour of Asia.
Mr. Prince’s stop in India comes just weeks before Citigroup will announce a broad restructuring plan that could involve the elimination or relocation of as many as 15,000 high-cost jobs from areas including New York, London and Hong Kong, several executives briefed on the matter say. The net job loss could be 10,000 to 12,000, some through attrition.
Citi’s consumer operations will be hardest hit, with front line and back office operations affected, they say. The corporate and investment banking businesses may be hard hit, with several thousand jobs lost, they say.
Managers in these units have been asked to review highly paid employees and look for places to cut fat, particularly just below managing director level.
The job cuts are part of a company-wide review sparked by the chief operating officer Robert Druskin, who two months ago decided to examine expenses and operations across the entire bank. A press release about the restructuring is due out in mid-April, executives say.
Citigroup, like other global banks, has been expanding its outsourcing in India beyond consumer services like bill payment, to include highly skilled areas like research, investment banking and credit analysis of non-Indian companies and deals.
Citigroup has over 600 such employees in India, and it is growing that number gradually.
With the restructuring, some jobs may also be moving to less expensive cities in the United States, like Buffalo, New York, Warren, New Jersey and the suburbs of Cincinnati, Ohio.
Citigroup, which employs more than 325,000 globally, is expected to save $1 billion in costs with the coming cuts.
Citigroup already has about 22,000 employees in India, making it one of the largest foreign banks there. Mr. Prince said today that India had been the single biggest driver of growth for Citigroup’s international operations. Managers in India were not asked to review their operations for possible cuts.
Mr. Prince spoke about the bank’s international growth to over 3,000 employees in India today, in a live town hall meeting in Mumbai and through conference calls with 30 other Indian cities. Mr. Prince and his wife Margaret Wolff are hosting a dinner today in Delhi for several hundred government officials and business executives.
Citigroup has been under pressure to cut costs and grow profits, after being dogged with problems from regulatory lapses to increased competition. Several analysts have suggested that the colossal bank is worth more in parts than together.
Mr. Prince seemed to refute that idea today, when he reiterated his “One Citi” mantra, telling employees that the bank should greet clients with one face.
International operations are already a big portion of Citigroup’s business: the bank’s international revenues in the fourth quarter of 2006 were $9.98 billion, or just over 40 percent of total revenues. International net income was $2.04 billion, just under 40 percent of the total.
International consumer operations brought in $4.95 billion in revenues in the fourth quarter of 2006, versus $7.96 billion from United States consumer operations.
However, in corporate and investment banking international operations provided more than half of Citigroup’s revenues, or $4.66 billion of a total $7.08 billion.
Citigroup will focus on two or three countries outside North America for growth, Mr. Prince said today, including India.
It is unclear how many of the relocated jobs could be moved to India, and Mr. Prince did not mention job cuts during his speech today. His speech was greeted with "rounds and rounds" of applause in Mumbai, said one person who listened to his speech.
Citigroup has 12,000 people on the ground in India in its business process outsourcing division, which processes credit card and mortgage payments and performs other back office functions. Sanjay Nayar, the Citigroup India head, told employees this month that the bank expects to grow that division by 200 employees a month, though that figure takes into account a very high turnover of employees.
Citigroup also has another 10,000 employees in India who work in 39 retail bank branches and 400 Citifinancial offices, as well as corporate and investment banking, private banking and wealth advisory.
During his town hall meeting, Mr. Prince gave an unexpected nod to John Reed, the former Citibank chief who tumultuously shared the top spot at Citigroup with Sanford Weill after it merged with Travelers Group.
Mr. Reed had often stressed that the future of banking would depend heavily on the internet, Mr. Prince told the India town meeting, a prediction that is bearing fruit.
March 26, 2007
Citigroup Plans to Shed Thousands of Jobs
By HEATHER TIMMONS and ERIC DASH
NEW DELHI, March 26 — Under pressure from shareholders, Citigroup is planning to shed thousands of jobs and sharpen its focus on its operations outside North America.
The colossal bank will get most of its growth from its international operations, chief executive Charles O. Prince told thousands of employees in India today, as he wrapped up a tour of Asia.
Mr. Prince’s stop in India comes just weeks before Citigroup will announce a broad restructuring plan that could involve the elimination or relocation of as many as 15,000 high-cost jobs from areas including New York, London and Hong Kong, several executives briefed on the matter say. The net job loss could be 10,000 to 12,000, some through attrition.
Citi’s consumer operations will be hardest hit, with front line and back office operations affected, they say. The corporate and investment banking businesses may be hard hit, with several thousand jobs lost, they say.
Managers in these units have been asked to review highly paid employees and look for places to cut fat, particularly just below managing director level.
The job cuts are part of a company-wide review sparked by the chief operating officer Robert Druskin, who two months ago decided to examine expenses and operations across the entire bank. A press release about the restructuring is due out in mid-April, executives say.
Citigroup, like other global banks, has been expanding its outsourcing in India beyond consumer services like bill payment, to include highly skilled areas like research, investment banking and credit analysis of non-Indian companies and deals.
Citigroup has over 600 such employees in India, and it is growing that number gradually.
With the restructuring, some jobs may also be moving to less expensive cities in the United States, like Buffalo, New York, Warren, New Jersey and the suburbs of Cincinnati, Ohio.
Citigroup, which employs more than 325,000 globally, is expected to save $1 billion in costs with the coming cuts.
Citigroup already has about 22,000 employees in India, making it one of the largest foreign banks there. Mr. Prince said today that India had been the single biggest driver of growth for Citigroup’s international operations. Managers in India were not asked to review their operations for possible cuts.
Mr. Prince spoke about the bank’s international growth to over 3,000 employees in India today, in a live town hall meeting in Mumbai and through conference calls with 30 other Indian cities. Mr. Prince and his wife Margaret Wolff are hosting a dinner today in Delhi for several hundred government officials and business executives.
Citigroup has been under pressure to cut costs and grow profits, after being dogged with problems from regulatory lapses to increased competition. Several analysts have suggested that the colossal bank is worth more in parts than together.
Mr. Prince seemed to refute that idea today, when he reiterated his “One Citi” mantra, telling employees that the bank should greet clients with one face.
International operations are already a big portion of Citigroup’s business: the bank’s international revenues in the fourth quarter of 2006 were $9.98 billion, or just over 40 percent of total revenues. International net income was $2.04 billion, just under 40 percent of the total.
International consumer operations brought in $4.95 billion in revenues in the fourth quarter of 2006, versus $7.96 billion from United States consumer operations.
However, in corporate and investment banking international operations provided more than half of Citigroup’s revenues, or $4.66 billion of a total $7.08 billion.
Citigroup will focus on two or three countries outside North America for growth, Mr. Prince said today, including India.
It is unclear how many of the relocated jobs could be moved to India, and Mr. Prince did not mention job cuts during his speech today. His speech was greeted with "rounds and rounds" of applause in Mumbai, said one person who listened to his speech.
Citigroup has 12,000 people on the ground in India in its business process outsourcing division, which processes credit card and mortgage payments and performs other back office functions. Sanjay Nayar, the Citigroup India head, told employees this month that the bank expects to grow that division by 200 employees a month, though that figure takes into account a very high turnover of employees.
Citigroup also has another 10,000 employees in India who work in 39 retail bank branches and 400 Citifinancial offices, as well as corporate and investment banking, private banking and wealth advisory.
During his town hall meeting, Mr. Prince gave an unexpected nod to John Reed, the former Citibank chief who tumultuously shared the top spot at Citigroup with Sanford Weill after it merged with Travelers Group.
Mr. Reed had often stressed that the future of banking would depend heavily on the internet, Mr. Prince told the India town meeting, a prediction that is bearing fruit.
