Layoffs always give a quick bump to the stock price, but then the decline sets in again when the org has no growth ideas, and less talent to implement anything.
Jan 2024:
https://www.reuters.com/business/finance/warren-buffett-tells-citigroup-ceo-fraser-keep-going-with-overhaul-source-2024-01-20/
March 2025:
https://finance.yahoo.com/news/warren-buffett-selling-bank-america-160500575.html
Sell! Sell! Sell!
Jane enabled and rewarded by aged out board, many including Jane will be on to retirement with the Golden parachute in next few years. Vote shares people
Trust me….Jane….is…..laughing….her…..@ss……off.
Can she make money? Sure she can….for HER. She’s got a very long sustained track record of getting her’s as evident by recent events. Layoff in mass and recoup the big payday for herself. Any self respecting CEO would opt to forego any huge raise or bonus in light of a company layoff but we are not talking about “self respecting” or what’s right or what’s fair or what makes sense. Jane is a tenured, hardcore, original gangster, going to get hers above all others. THIS is first and foremost on the front, middle and back of her mind 25 hours a day, 8 days a week, 366 days a year. Don’t ever and I mean ever, think that she will put the welfare of any employee above herself. SHE is first, anybody who can do anything for her (not the company) is second and so forth. Bottom line, this is her train. You either step in line, accept it or get off.
In continuation of last comment, she has consistently fired or exited out of the business & countries. Has anyone heard of any new strategy, product or service, focused on business growth ?
Has she ever made money? Her MO is to layoff. She has done that every step of her career since her first CEO role
Warren Buffet has always given advice to CEO’s that always benefits him. Oh sure its under the guise of “what’s best for this company that this CEO is running” but he knows that the CEO will listen and react to what he says. Meanwhile on the backend he’s moving his chess pieces around. Jane was manipulated like so many others before her, played like a violin. As a result of the board giving her the ultimatum of making things better, she sought out advice from him. As mentioned before if you ever want a stock price to move sooner rather than later, go through a layoff. A default reaction is usually a raise in the price. The true test is whether it sustains at the new higher level or not. Either way, this is the path she chose.
For Buffet, while he’s not opposed to making a quick buck, at his core he’s a value investor. If he’s dumping a stock, he finds no future value in it. It does not matter what the catalyst of any stock drop is, he finds no future value in it. In this case, no future value in Citi stock to weather the storm. Yes, I know he’s dropping other bank stocks. I don’t care if he’s also dropping other bank stocks. I don’t work for other banks.