Apr 18, 2007

Do You Work For Citigroup?

Well tomorrow is the day that Eileen Alt Powell, an AP business writer, wrote that Citigroup Inc. chairman and chief executive Charles Prince will announce, via a conference call, the companies proposed plan to satisfy disgruntled shareholders. Media reports that as many as 26,000 people could get their pink slips or be “reassigned”.

On March 26 an article in the Sacramento Business Journal said that media estimates were that Citigroup would cut 15,000 jobs. That estimate has grown and Prince is also quoted in the AP article as saying that “some operations would be moved "to lower-cost locations." And, he said, there would be continuing efforts aimed at "rationalizing our technology platforms to operate more efficiently and effectively."

These cuts are said to generate $2 billion a year in savings.

Other current activity, of interest by Citigroup, is their binge of takeovers:

Citigroup's overhaul came as the bank announced it will purchase the bank of The Overseas Chinese Bank, a mid-sized Taiwanese bank, for $425 million.

Last month, Citigroup announced it was launching takeover bid worth up to $13.3 billion for Japan's Nikko Cordial Corp., the country's third-largest brokerage.

In December, Citigroup acquired an 85.6 percent stake in the southern China-based Guangdong Development Bank for $3.1 billion.

Newer article on July 4, 07: Citigroup Mixed Signals & None Good

I have to wonder how many more jobs can be moved overseas. The Chinese are ready, willing and waiting for our jobs. Take a look at: One benefit you won’t find in the United States.