Delaware Citigroup Employees Await Monday Town Hall Meeting For Lay Off News

Filed in National by on November 16, 2008

(CNBC) Citigroup plans to shed about 10 percent of its global workforce, a person familiar with the matter said Friday, as it tries to restore profit and quiet mounting criticism of Chief Executive Vikram Pandit.

Citigroup CEO Vikram Pandit plans to make a dramatic statement Monday morning about major cut backs in the struggling firm’s workforce aimed at calming market fears that the troubled financial services giant isn’t taking the steps necessary to address its many ills, which include a bloated cost structured that has sent shares of its stock reeling, people close to the company said.

These people say that as of Saturday afternoon the exact size of the cuts is not known, but it’s expected to be higher than the 23,000 cuts the firm made as of end of the third quarter to its workforce of approximately 350,000 worldwide. These people say the overall size of the cuts that Pandit will announce during a highly anticipated town hall meeting could add up to close to 40,000 depending on the number of asset sales, such as spinning off businesses the firm could pull off in addition to additional planned layoffs.

Massive cuts are expected to occur in short order. The article indicates, the next five or six months.

“The object (of the meeting) is for people to take notice,”

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Jason330 is a deep cover double agent working for the GOP. Don't tell anybody.

Comments (10)

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  1. Unstable Isotope says:

    Yes, this quarter is going to be brutal for job cuts.

  2. jason330 says:

    I’m thinking that the bankruptcy bill that Banks got Joe and Tom to move hasn’t been the boon for the industry that they thought it would be.

  3. Unstable Isotope says:

    You’re right about that Jason. I hope one of the early activities of the new Congress is to re-address the BK laws.

  4. X Stryker says:

    Citigroup will be hit pretty hard because they’ve been losing money hand over foot all year. Citigroup is the biggest danger to the economy right now.

  5. jason330 says:

    I cringed last week when I heard Paulson say, “All large institutions are now safe.”

  6. Jason O'Neill says:

    I love how you single out Citigroup in your doom news.

    Why not post on J.P. Morgan Chase and Goldman Saches. Read this:

    http://www.marketwatch.com/news/story/jp-morgan-reportedly-plans-thousands/story.aspx?guid=%7B6283B7FE%2D9307%2D44AC%2DA630%2D88D606E632E3%7D&siteid=yhoof

    Citi like other banks are going through a tough time. Find me on that isn’t.

    Also let’s be fair and focus on the fact if GM fails, Boxwood Plant and supporting firms that supply parts would also collapse as well. Just as they have and will continue to do so when Chrysler Newark plant shuts down before the end of the year.

  7. jason330 says:

    It is indeed tough to keep up with all the bad news stemming from Bush Co. policies.

    What I think is interesting in the Citi is the “town hall meeting of doom.”

  8. Unstable Isotope says:

    Plus the employees have all weekend to worry about it. Not cool.

  9. Joanne Christian says:

    Oh this is swell. I have 2 friends who are supposed to report to Citi tomorrow, to BEGIN work. They are leaving self-employment.