Citi poised to fire thousands (6,500 jobs) - Report

[UpInArms]

Source: Wall Street Journal via CNN

NEW YORK (AP) -- Citigroup is preparing to fire thousands from its worldwide investment-banking division, The Wall Street Journal reported on Sunday.

The Journal, citing people familiar with the matter, said the layoffs are part of a plan to cut about 10% of the staff of the 65,000-member investment-banking group.

Messages left with Citigroup spokesmen on Sunday were not immediately returned. The Journal said the fired employees could be notified as early as Monday.

The New York-basked global bank, along with much of Wall Street, is in the throes of recovering from bad investments on mortgages and leveraged loans that cut billions of dollars from its portfolio.

It was not immediately clear if the reported job cuts would be in addition to cuts announced by Citigroup (C, Fortune 500) in April. After reporting a $5.1 billion first-quarter loss, the bank said then it was reducing its staff by 9,000, in addition to the 4,200 job cuts the bank announced late last year.

Read more: http://money.cnn.com/2008/06/22/news/companies/citigroup_layoffs.ap/index.htm

[Pale Blue Dot]

1. I think that most people are thinking: "Investment bankers. Good. They deserve it."

What these people fail to realize is what this says about our economy.

Continue sleeping, people. :grr:

[Stephanie]

9. It's the support staff who will take the brunt of it.

A lot of secretaries, and graphic artists, and mailroom employees, etc.

[NashVegas]

12. People Who Bring In Money - "Deal Makers" - Will Get Raises

Everyone else will be made redundant and the jobs outsourced to India.

Isn't it funny? American teenagers are being sold a bill of goods - specialized degrees - and the only skills that really matter in corporate America are Getting People to Part With Huge Sums of Money and Getting Ahead.

[Hydra]

14. I think people here realize that this is not a sign of pain

Coming from the people screwing us.

This is the sound of 6,500 more people unemployed and scrambling to survive.

The fat cats nod sagely, petting their golden parachutes for when they decide to leave.

[OhioChick]

2. More jobs down the shitter....

Don't even know what's left to say reading these headlines day after day....

[Tutonic]

3. Wow, I'm surprised that the entire thing doesn't go under.

Citigroup pretty much divested its holdings of "safe" investments a while back. Everything that I read suggests that the entire company is insolvent. Sad.

[Pale Blue Dot]

4. You must have a crystal ball.

I would bet on your prediction happening soon.

[Dr.Phool]

6. A lot of banks getting ready to fail.

I saw a list about a month ago that listed the 10 most likely to go under. Four were Ohio based. National City, Huntington, Key, and Fifth Third.

My wife used to work for Key, and her 401k was in Key stock. I told her that night, get it the fuck out of there now! We paid the 20% withholding, and cashed out, but a week later the stock had lost over 30% of it's value.

[Art_from_Ark]

8. FIfth Third is really a bank?

And here all this time I thought it was just a name made up by a junior high spam mailer :dunce:

[AP]

11. Why didn't you transfer the money to a qualified investment (eg IRA CD) and avoid the penalty???

[Dr.Phool]

5. I wish they'd fire the guy in charge of their marketing division.

My wife and I were receiving , on average, of 20 credit card solicitations per week, just from Citi! And a shitload more from other banks.

About 2 moths ago, we signed up for that "opt out" option at the FTC website. Now we have a nice, clean mailbox.

[skoalyman]

7. the more things unwind in the

credit markets the more people they'll have to down size :nuke: www.investopedia.com/terms/u/unwind.asp

[OhioChick]

10. 6,500 People Lose Their Jobs....

And it's not front page news, yet? :wow:

I'm sure those losing their jobs aren't suits, but average citizens.

[KoKo]

13. I don't think we will be seeing much real "news" in the coming months...

They are on "election Lock Down" just like they do every two years. Including our Congress. :-(