#costcenter

There’s so much angst and misdirected frustration on this forum. This is an investment company. Not IT, not Distribution, not “Architecture”.

Only 10% of associates are investment staff. They generate the profits. They make the money.

Rest all are support staff. They consume money generated by investments. No matter how vital your job is, you are not making any money for the firm. You are a cost center.

Cost centers get cut when profit machine slows. Profit centers cannot be cut without shrinking profits further. That is called business.

Get used to it. Or go work at a farm.

I have a meeting today. Scheduled very late night. 90% chance being cut. I will come back to update if it's true. People in US already were told to retire if they can. Being in Tech or in low cost center does not save you.

It's just too much of a cost center in the eyes of Jane and her EMT's. The expense associated with it is a blot on the balance sheet and has now become unbearable for senior management. They think they can manage the present administration into leashing the FRB/OCC and are confident that they can close the regulatory issues by early next year. Throughout this year there is bound to be multiple rounds of focussed RIF's. Why multiple? Because they can't get rid of everyone all at once plus there's the small matter of not attracting higher SUI taxes ..especially from New York. Since SUI pays for unemployment, large layoff's cause states to increase Citi's contributions and a dime spent on anything else means a dime less in Jane's compensation - unacceptable

As Trim (welcome back Trim!) indicated in his post, layoffs will happen every few months. And there is likely going to be deep cuts in Transformation (Anand S), Risk Mgmt (second line), Data (A Nawani) and Tech that supports transformation. Likely Financial Crimes as well due to offshoring. Some of these may see cuts ahead of others.

Jane and EMT are sick of Transformation. They feel it's holding the bank back, doesn't justify the expense (never mind that empires were built under Jane's watch) and is wholly unneccessary. They have made up their mind to cut the umbilical cord. If a latger Dem administration comes in and brings back regulatory scrutiny...well, Jane will be long gone by then. WHoever is in the chair at the time..let that person solve for it.

Folks in any of the above....start updating your resume, upskilling, applyin and interviewing and activating network. You all will need it. Focus less on Citi's work...do the bare minimum. They don't care what work you did or didn't do when the RIF lists are prepared. Look out for yourself first