Citibank

[u4d18]

Anyone else heard the rumour that citi are cutting 30-40K jobs world wide and 3K in london? Announcement is apparently next week.

I wonder if this will replicate across the banking sector...

[Killer Bunny]

I've gone on record as forecasting 30 - 50k job losses in The City over 12-24 months from last summer. I was of course called a crackpot on several occasions...

[conifer]

This is just a rumour. But if it's true it will knock the banking sector reeling and the recession / property crash / redundancies snowball will begin to roll, possibly after a brief 'eat, drink and be merry for tomorrow we die' phase.

Edited January 13, 2008 by conifer

[tinecu]

Err... http://business.timesonline.co.uk/tol/busi...icle3176801.ece

<H1 class=heading>Citi and Merrill seek $18bn rescue funds</H1><H2 class="sub-heading padding-top-5 padding-bottom-15"></H2>Dominic Rushe LOSSES from mortgage deals that turned sour are expected to cost Merrill Lynch $15 billion (£7.6 billion), almost double its original estimate, when the Wall Street bank reports earnings this week. The losses far exceed the $12 billion hit that many Wall Street analysts had forecast.

The bank is now reportedly seeking to raise $4 billion from investors in America, Asia and the Middle East to shore up its finances.

Citigroup, its rival and another big loser in the collapse of the credit markets, is believed to be wanting to raise $14 billion from foreign investors as its mortgage-related losses deepen. Citi has been in talks with cash-rich institutions such as the China Development Bank, which is prepared to invest $2 billion.

Merrill and Citi are in the process of cutting thousands of jobs and raising cash from disposals while the share values of both have fallen 45%- 50% in the past 12 months.

Merrill Lynch’s fourth-quarter charges, the largest in the New York bank’s 94-year history, follow $8.4 billion of writedowns from the third quarter that led to a $2.2 billion net loss and the ousting of its chief executive, Stanley O’Neal.

John Thain, O’Neal’s recently appointed successor, has moved quickly to address the bank’s financial woes. Soon after his arrival, Merrill Lynch sold a $5.6 billion stake to Temasek Holdings, which is controlled by the government of Singapore, and Davis Selected Advisers, an American-based money management firm.

Thain also said that Merrill is considering a sale of its stake in Bloomberg, the financial news and information company founded by New York’s mayor Michael Bloomberg. Brad Hintz, an analyst at Sanford Bernstein & Company, has valued the stake at about $4 billion.

In recent months, the Government of Singapore Investment Corporation has invested $9.7 billion in UBS; Citi has sold a $7.5 billion stake to the Abu Dhabi Investment Authority; and the China Investment Corporation has put $5 billion into Morgan Stanley. Wall Street analysts say more writedowns will come.

_____________________

Trouble at mill sire!

[conifer]

These people who run up big credit card bills or get in mortgage arrears are always advised to come clean early on and try to sort things out rather than let the troubles mount up.

But the banks look like they've done just that and not heeded their own advice.

[Guest tbatst2000]

Anyone else heard the rumour that citi are cutting 30-40K jobs world wide and 3K in london? Announcement is apparently next week.

I wonder if this will replicate across the banking sector...

It's not a rumour, they've already said they're going to do it. One thing to be aware of is that the figure includes open headcount as well as actual employees so the number of people being laid of will be substantially less. Also, 30K is still only 10% of their global workforce - given how big a hit they've taken, I'd expect to see much bigger cuts than this if their business doesn't pick up in the next few months.

[The General]

It's not a rumour, they've already said they're going to do it. One thing to be aware of is that the figure includes open headcount as well as actual employees so the number of people being laid of will be substantially less. Also, 30K is still only 10% of their global workforce - given how big a hit they've taken, I'd expect to see much bigger cuts than this if their business doesn't pick up in the next few months.

I know for a fact that they (the big City Investment banks) have been clearing out for the last 2 months. On top of these perm jobs going they've been clearing out contractors/ temps etc. Whatever they announce as losses you could safely add 25% for the real figure of jobs lost...

On top of that is the waves of offshoring in the City Insurance/Re-Insurance companies and its all looking a bit bleak at the moment

[Ah-so]

Interestingly, Merrill Lynch have not really cut bonus payments this year, except in the affected areas, such as fixed income.

[Goldfinger]

Interestingly, Merrill Lynch have not really cut bonus payments this year, except in the affected areas, such as fixed income.

Northern Rock hasn't cut that much either.

[okaycuckoo]

[Yoss]

Can't help but wonder how Citi's bail out by Far East SWF's will influence thier choice on where to cut Jobs!!!

I know If GB had the spare cash to broker that kinda of deal he would have made pretty bloody certain that a few gaurentees of the jobs in his realm wouldn't be in the line of fire, of the dirty great axe that is about to fall!

30K-50K in London would sound about right to me on the current sub-prime fall out. However if the next round of write downs is anywhere near as big as some are forecasting.. I can see London being written off the world map as a financial centre, especially if Far East SWF's are the one's that keep plugging the those black holes.

But I too am clearly a deranged paranoid crackpot. Yip Yip

Edited January 13, 2008 by Yoss

[u4d18]

Got a little more info...

Aparently the London cuts will be many higher level high paid jobs... I guess they've already outsourced most of the lower jobs anyway, but this round of job cuts is going to be very deep. They've also banned foreign travel (business) unless it's absolutely necessary. Going ffrom a company that flew people around business class for a couple of hour meeting in america and then all the way back I'm guessing that credit tightening is beginning at home...

[zinny01]

Anyone else heard the rumour that citi are cutting 30-40K jobs world wide and 3K in london? Announcement is apparently next week.

I wonder if this will replicate across the banking sector...

No but I did hear that there are $24bln additional write downs coming their way in the next two weeks.

http://www.housepricecrash.co.uk/forum/ind...st&p=924636

[better-than-expected]

I know someone who works there and he is currently working from 8-12. Thats not 12 midday

, that is 12 midnight. And the best bit is that the workers are trying to out do each other by doing the most VOLUNTARY extra hours for NO PAY to hopefully secure their jobs.

Now i know people earn a lot of money in London. But being away from home for 18 hours a day ( including travel ) is a bit too much.

[stuckmojo]

I know someone who works there and he is currently working from 8-12. Thats not 12 midday

, that is 12 midnight. And the best bit is that the workers are trying to out do each other by doing the most VOLUNTARY extra hours for NO PAY to hopefully secure their jobs.

Now i know people earn a lot of money in London. But being away from home for 18 hours a day ( including travel ) is a bit too much.

very good point.

One of my fellow graduates works for one of the big banks in Canary Wharf. Initially, I was a little jealous of his 60k salary and all, compared to mine, but then he told me he worked 34 days running for an average of 16 hours per day.

I was earning half of what he did, but in Newcastle life was (is) cheaper and at 37 hours a week I concluded that my quality of life was higher.

[Guest grumpy-old-man]

very good point.

One of my fellow graduates works for one of the big banks in Canary Wharf. Initially, I was a little jealous of his 60k salary and all, compared to mine, but then he told me he worked 34 days running for an average of 16 hours per day.

I was earning half of what he did, but in Newcastle life was (is) cheaper and at 37 hours a week I concluded that my quality of life was higher.

exactly & that's the point. These idiots (imo) that work 18 hours a day, 7 days a week, will reap their just rewards in later life. Normally a failed marriage, alchohol dependance, kids that don't know or like them, messed up kids (which I do feel sorry for btw), bad health due to stress, etc, etc.

I think it shows what a person is like in life. Just take a look at their priorities, persona & appearance; what they do, what they drive, how they act, where they holiday, do they have any animals etc etc.

trust me you can learn so much about people very quickly, then avoid them.

edited to add - the vast majority of people want something from you, & for nothing usually. In my experience anyway.

Edited January 14, 2008 by grumpy-old-man

[babesagainstmachines]

I was earning half of what he did, but in Newcastle life was (is) cheaper and at 37 hours a week I concluded that my quality of life was higher.

Talk of "quality of life" is treachery and treason. You should be ashamed.

Everyone knows it is ALL about numbers and making them as large and impressive looking as possible. Just ask the Government (personal debt, government debt, long term sick, prisoner numbers, immigration, emmigration, bankrupties, working hours, house prices, obesity, MPs salary, energy prices, number of public sector workers etc etc.)

[Joey Buttafueco Jr]

exactly & that's the point. These idiots (imo) that work 18 hours a day, 7 days a week, will reap their just rewards in later life. Normally a failed marriage, alchohol dependance, kids that don't know or like them, messed up kids (which I do feel sorry for btw), bad health due to stress, etc, etc.

I think it shows what a person is like in life. Just take a look at their priorities, persona & appearance; what they do, what they drive, how they act, where they holiday, do they have any animals etc etc.

trust me you can learn so much about people very quickly, then avoid them.

edited to add - the vast majority of people want something from you, & for nothing usually. In my experience anyway.

Not everyone works those hours. From what I've seen traders are in around 7 and out at 5

[whenwillitend]

very good point.

One of my fellow graduates works for one of the big banks in Canary Wharf. Initially, I was a little jealous of his 60k salary and all, compared to mine, but then he told me he worked 34 days running for an average of 16 hours per day.

I was earning half of what he did, but in Newcastle life was (is) cheaper and at 37 hours a week I concluded that my quality of life was higher.

one of my best mates works at Citigroup, does 6.30-6.30 every day and an hours work from home in evening.. he's totally changed since working there, not for the better.. probably earns up to £50,000 but still..

[piece of paper]

one of my best mates works at Citigroup, does 6.30-6.30 every day and an hours work from home in evening.. he's totally changed since working there, not for the better.. probably earns up to £50,000 but still..

I'm doubtful about extreme long hours merchants. From time to time I might do a 16 hour day if there is an imperative deadline. It knocks me for a couple of days afterwards.

I question whether anybody can keep doing this day on day. I'm more inclined to believe that there is a lot of looking busy going on so that the bosses believe that the individual is being as industrious as everybody else (despite them doing the same). It's a sort of overworked hardship club.

p-o-p

[Guest An Bearin Bui]

one of my best mates works at Citigroup, does 6.30-6.30 every day and an hours work from home in evening.. he's totally changed since working there, not for the better.. probably earns up to £50,000 but still..

Funny how someone can work in the City and still be unable to do basic maths - earning 50k p.a. and working 13 hour days is the same hourly rate (about £14) as someone earning 30k and putting in their regulation 40-hour week. Working those hours you would need to get a good 25% bonus every year just to make it close to worthwhile. I suppose a lot of them think they're 'on the management track' to make big bucks as CEO some day - well, not if the credit crunch gets them first.

[Note to self: Cunning Plan for 2008: set up a business where I can employ people like this for peanuts by convincing them that they're in a prestigious job and are 'on the management track'... ]

[Doom Lord]

Funny how someone can work in the City and still be unable to do basic maths - earning 50k p.a. and working 13 hour days is the same hourly rate (about £14) as someone earning 30k and putting in their regulation 40-hour week. Working those hours you would need to get a good 25% bonus every year just to make it close to worthwhile. I suppose a lot of them think they're 'on the management track' to make big bucks as CEO some day - well, not if the credit crunch gets them first.

[Note to self: Cunning Plan for 2008: set up a business where I can employ people like this for peanuts by convincing them that they're in a prestigious job and are 'on the management track'... ]

Good point, people are really dumb, No company would give their services or goods away for free so why should an employee. There are lot of easier ways to make £50K a year than working 16+ hours a day. Personally my rule is that you work to live not live to work. My Family and Friends will come first every time.

[Gone baby gone]

I'm doubtful about extreme long hours merchants. From time to time I might do a 16 hour day if there is an imperative deadline. It knocks me for a couple of days afterwards.

I question whether anybody can keep doing this day on day. I'm more inclined to believe that there is a lot of looking busy going on so that the bosses believe that the individual is being as industrious as everybody else (despite them doing the same). It's a sort of overworked hardship club.

p-o-p

Don't forget, it's not just the hours they are at their desk. What about time spent prodding Blackberry's, taking work calls outside of work hours or having to connect over the VPN to check things, answer email on a weekend or evening.

[piece of paper]

Don't forget, it's not just the hours they are at their desk. What about time spent prodding Blackberry's, taking work calls outside of work hours or having to connect over the VPN to check things, answer email on a weekend or evening.

Wow. It's no wonder that they feel the need for an 'executive apartment' to unwind in!

p-o-p

[THE BALD MAN]

I'm doubtful about extreme long hours merchants. From time to time I might do a 16 hour day if there is an imperative deadline. It knocks me for a couple of days afterwards.

I question whether anybody can keep doing this day on day. I'm more inclined to believe that there is a lot of looking busy going on so that the bosses believe that the individual is being as industrious as everybody else (despite them doing the same). It's a sort of overworked hardship club.

p-o-p

I have found that using a full sized cardboard cut out with hidden microphone coupled with a jacket being left over a chair is the best way to deal with the long hours expected in organisations. Works wonders while you are down the pub