Well I guess that answers if layoffs will be slowing...
https://www.bloomberg.com/news/articles/2025-01-15/citigroup-earmarks-600-million-in-severance-for-fresh-job-cuts
8 replies (most recent on top)
What a DB. It doesn't always work that way. Some groups are bloated despite high performers and good relationships. Some high performers got bad comps. That depends on your group's budget. But thanks for the lesson..
Let me make a flow chart for you, children:
Do you su-k at your job ? Do you fail to deliver? Do you constantly butt heads with your manager or team? Do you work in a business line that isn’t strategic ?
—> you should worry about a layoff
Do you not fall into any of the above categories
—> you probably don’t need to worry about a layoff
Also comp for high performers was good this year. Comp for low performers was less good.
These and other revelations are available to you in any basic management course. No need to stress yourselves out with the musings of disgruntled AVPs.
I don't get the whole "earmarking" money for layoffs. Often it's been said that Citi doesn't have the budget to lay off anymore. But this money isn't incremental. If you are going to lay off 10k employees you already have the budget to lay them off because they are already on the payroll and already in your budget. If someone has a 3 month severance, you were going to pay them as an employee anyway, so where's the "earmark"? You just pay them what you would have paid them anyway and then they drop off the payroll after their severance period. If I own a company with 100 employees and want to fire them all with a 3 mos. severance, I am not paying them anymore than I would have for those 3 months. And after that I am paying them nothing. No earmark or incremental budget needed.
So much nonsense in the last post..
CITIGROUP will be bought out by another bank. After 4 or 5 years of trying to satisfy the OCC concent order they are still not even close to completion. They are using the old idea that throwing bodies at the problem will eventually fix it. We all know how well that works.
10K let go all at once = 10K gone.
10 let go over 12 months = is slower but is still 10K gone.
So…..HOORAY!!! LAYOFFS HAVE SLOWED DOWN!!!!…..wait….what?!?!…..nevermind….
JFC...
Yes. It’s slowing thank you Captain Obvious.