50,000 Jobs to be Eliminated at Citigroup

By
Real Estate Agent with ERA Queen City Realty

Citigroup, thought to be one of the more conservative players in the financial industry, hasn't gone unscathed by the mortgage meltdown.  While, Citgroup has not made a play to acquire any struggling competitors, it has likewise not been a target for a takeover.

Citigroup's problems were highlighted back in January of this year in an article by Charlie Gasparino for CNBC On Air entitled Citigroup's Layoffs Could Reach 24,000 This Year. The projection was reflective of the anticipated impact from the downturn in the market combined with a portfolio of non-performing sub-prime loans.

Fast forward to this morning and we now get news that the number of layoffs has risen from 24,000 to 50,000 worldwide. There is no information on the numbers specific to the united States at this time. However, one could speculate that the company's base will probably be hit the hardest. That means that New York will probably be reeling from this latest announcement.

 

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Rainmaker
69,916
Dean Akey
Saint Charles, IL

It seems that we see this type of news every day now.  It sure would be good to see some positive news.  I do hope that our lenders can get back on their collective feet soon.

Dean

Nov 17, 2008 08:44 AM #1
Ambassador
652,993
Kristal Kraft
The Berkshire Group Realtors - Denver, CO
Denver Real Estate - 303-589-2022

Too bad for all the workers. Having a job is going to be a rare commodity soon.

Nov 17, 2008 08:46 AM #2
Rainmaker
199,765
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Director of Property Management

Dean, Clearly, too many of the lenders got on board with the quick money loans and now they are paying the price. So will survive and others will go by the wayside. Hopefully, they have learned valuable lessons and going forward make better business decisions.

Krystal, In my other life I was an "efficiency expert". Typically my firm was called in to eliminated jobs, at a minimum of 20%. I can tell you, they always start at the bottom. Those most vulnerable, who can ill afford any kind of job loss. If the numbers don't achieve the goal at that level, they start to pick off the least favored departments and department heads. This is a bloodbath at one seventh of their workforce. I also think of the rippling affect on the local economies of the neighborhoods where these employees work and live. The fallout will be far more than just 50,000 worldwide.

Nov 17, 2008 08:53 AM #3
Ambassador
835,395
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

My loan is with Citigroup.  And, I have recently met some sellers that will need to be in a short sale position.  When this happens, as it so often has, starting with IndyMac...right in the middle of a deal I was working on, it makes life much more difficult for us all.  I, too, hope that this will turn around soon.  I saw our President-Elect on 60 minutes last evening, and it appears that he "gets it" and will be making some changes via executive order.  He has nearly two months to get prepared and I;m sure some thoughtful changes will be effected.  Let's hope so. 

Nov 17, 2008 09:06 AM #4
Rainmaker
199,765
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Director of Property Management

Suzanne,

Thanks for stopping by. I hope that the president elect's policies will stimulate consumer and investor confidence. We need the money to flow through the economy like blood through our veins. It is the life line for job creation and a better tomorrow.

Nov 17, 2008 09:12 AM #5
Ambassador
727,666
Christopher and Stephanie Somers - Realtors - Philadelphia Real Estate
Realtor / Owner - RE/MAX Access - Philadelphia, PA

Yes it is not pretty at all !  Closing at $6.40 today is very ugly... maybe a great buy ???  Is rough out there.

Nov 19, 2008 07:33 PM #6
Ambassador
717,340
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

William,

The consolidation at Citi goes a whole lot deeper than loan officers.  I think they'll survive and rebound.  I'd rather be buying their stock than that of GM!

Mike in Tucson

Nov 20, 2008 06:23 AM #7
Anonymous
Anonymous
Anonymous

Hey, William. I also read the comments, including yours about previously being an efficiency expert. I thought I had wanted to have a company like that, but in my very first go at it, I was hired to make the communications system more efficient. Their first go at it, eliminating 25 jobs, didn't have a noticeable effect.

I wound up saving the company over $100,000 a month in communications costs, but interestingly the person who hired me was the Vice-President of Operations, and he was the #1 problem. He thought he was immune until the President/Owner found out I was terminating our contract and asked me why. The whole company on all ten floors heard the "conversation" between the President and Vice-President that afternoon. I don't know the outcome, but I saw that efficiency would have to be applied to my own life and company, not to others.

Nov 20, 2008 07:17 AM #8
Rainer
7,046
Christopher Hallmark
The People's Home Mortgage Corp. - Matawan, NJ

Sad to see this news about Citi.  When you see the more conservative type establishments start to struggle for dear life, you KNOW it's gotten bad. 

 

Regards,

 

Chris Hallmark

Nov 21, 2008 04:57 PM #9
Rainmaker
695,956
Lanre Folayan
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC - Washington, DC
How much is my Petworth DC House Worth?

Its just sad all around. I mean when is it going to end? That's the question I want to know. God help us all but things got to get better soon. Happy Thanksgiving to you and your family. Great post.

Nov 27, 2008 06:55 PM #10
Ambassador
727,666
Christopher and Stephanie Somers - Realtors - Philadelphia Real Estate
Realtor / Owner - RE/MAX Access - Philadelphia, PA

The Citigroup story is an interesting one ... it seems to change daily.  Looks like the company now though will weather through the storm !  Have a great Thanksgiving weekend !

Nov 28, 2008 08:42 AM #11
Ambassador
738,837
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

William.... it is getting ugly out there.  Even those that you think are safe, aren't.  On another note, I hope all is well.. I haven't seen you around in the last 3 weeks. You have been one of my stronger supporters of lately. And I actually wanted to pay it forward, but haven't seen you pop lately. 

jeff belonger

Dec 10, 2008 03:36 AM #12
Rainer
197,358
Tim Ludemann
Sand Castle Realty Group, Inc. - Estero, FL

What crazy, sad and yet oportunistice time...Thanks for the info on Citi and best of luck in 2009.

Dec 23, 2008 11:00 AM #13
Anonymous
Anonymous
Candis Pressley

Hi Bill,

I see you have really got this bloggin thing down.  I'm a novice. How did you get all those darn points!!! Check out my page www.activerain.com/cjpressley.

Your Realtist Sista,

Candis

Jan 02, 2009 09:56 AM #14
Rainer
14,135
Adriano Tori
REMAX Eastside Brokers - Seattle, WA

there is a book highly informative and educational that predicts the failure of those do it all corporation , the book is Focus by Al Ries a must read for all small business owners. " you can't be everything to everyone.

Jan 26, 2009 06:25 PM #15
Rainmaker
81,870
dgedtrger qwertertr
The People's Home Mortgage - Barkhamsted, CT

And just think..this company didn't even get involved in sub prime lending and look where they are.  Go figure.

 

Chris Hallmark

homes nj for sale

Feb 03, 2009 03:11 PM #16
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Rainmaker
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William Collins

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