The main reason for laying off only 5k people in q1 is the money! We cannot afford to spend $1.2 billion more to layoff 15k+ more people. It had costed $85k per head, on an average, to layoff 7k people in 2023. So, Citi has changed the game plan. Over the next 3 years, Citi won't hire much. Many people will quit. Naturally, 5k people will get a 4 rating every year. Citi will not pay severance to them. Evil, but a smart strategy.
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To the OP, when the 1 to 3 rated 5,000 or more employees show their Employment Lawyers their ratings were suddenly and inexplicably changed to 4's and/or suddenly on PIPs because Citi does Not want to pay severance if Citi laidoff those 5,000+ employees, Citi will have Lawsuits against it. EVIL, CITIEVIL !!! Citi may even brand a new credit card or other product as CITIEVIL ! These employees should do media interviews, get paid for doing the interviews and tell the world about Citi's Diabolical plans !
I think Citi has a reputation for employee layoffs, My friends at Deutsche bank warned me 2 years back when I accepted the offer.
Oh they know what they are doing alright. Citi is extremely well versed on laying off, masters at it even. This in itself should tell you volumes, tells you everything you need to know.
they will lay off high earners w 1 yr or less under their belt at the bank to avoid paying significant severance costs. they fully understand what they are doing
This is not accurate.
Maybe not, but you don’t need a lot of money to “manage” people out.
A solid performer ranking 2-3 all of a sudden is just not “getting it” , “not meeting expectations” , “not rising to the challenge”….next comes PIP, next comes showing you the door. Not a fast process but much cheaper than severance.
Guessing the recruiting department is going to be cut pretty deep since there will be a hiring freeze
That is why prudent and smart companies regularly remove bad / stupid employees. I have seen this in my previous employers - and they are still very profitable... What usually happens is that the manager gives consistent bad score / year-end feedback and at some point the employee leaves on its own.
But tbh, if is also about filtering at the entrance - not allowing many stupid employees, like in the case of Citi...