Citigroup's 52,000 layoffs will impact IT
Expect Citigroup to reach head count reductions by selling off and outsourcing IT operations where it can, one analyst said
Computerworld - Given Citigroup's stated plans, a massive head count reduction announced today is sure to include a fair share of IT jobs.
The financial giant said on Monday it was planning to reduce head count by a staggering 52,000 employees over the next few months -- the largest reduction by a company since IBM's layoffs of 60,000 employees back in 1993, and the 50,000 cuts by Sears that same year, says executive outplacement firm Challenger, Gray & Christmas Inc.
Citigroup's latest round comes on top of the 17,000 cuts that the company has already made in the first three fiscal quarters of this year.
The goal now is to pare down the workforce from its current level of 352,000 to about 300,000 employees worldwide, Citgroup CEO Vikram Pandit said in an investor presentation (PDF) posted on the company's Web site today.
That target number is nearly 75,000 lower than the workforce of 375,000 employees at Citigroup as recently as the fourth quarter of 2007.
About half of the reduction will come from Citigroup's divestiture of non-strategic businesses, and the rest will come from layoffs that either already have been announced or are being planned, Citigroup said. "We entered 2008 with more people, more businesses and more assets than fit our strategy," Pandit said in the presentation. "We expect near-term head count to be down 20% in order to run the company in the right way."
The move is part of a wide-ranging effort to improve operational efficiencies and slash expenses at the financially troubled financial giant, reducing Citigroup's operating expenses from the nearly $62 billion it spent over the last year to between $50 billion and $52 billion. "There is nothing easy about these decisions and the impact on our people. We do this because we must and not because we want to," Pandit said.
No details have been released yet on where the job cuts will come from, or what job functions might be most affected. But TowerGroup analyst Guillermo Kopp said to expect a fair share of them to involve IT functions.
Citigroup has previously disclosed its plans to derive some major cost reductions from its multibillion dollar 25,000 person IT organization. Last year, before Pandit became CEO, Citigroup announced that it would be overhauling its IT functions via a series of data center consolidations, better use of existing technologies, optimization of global voice and data networks, standardization of its application development processes and vendor consolidation.
"Simplification and standardization of Citi's information technology platform will be critical to increase efficiency and drive lower costs as well as decrease time to market," the company said in April 2007 when it reduced head count by 17,000 employees.
Crafty hackers hack craft stores -- again.
Michaels Stores (NYSE:MIK) has finally confirmed the details of the point-of-sale hack revealed in January. It's unclear what's taken them so long -- the company claims the hack was "highly sophisticated," but everyone uses a blah-blah phrase like that.
Your humble blogwatcher notes that the problem persisted for more than a month after the news first broke. smh.
In IT Blogwatch, bloggers are aghast that, for the second time, the company's POS was hacked -- lasting almost nine months.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- The Big Data Opportunity for HR and Finance
- If CEOs, CFOs, CIOs, and CHROs want to drive their businesses forward, they will need to quickly recognize the enormous value of big...
- Manufacturing Outlook: Improving time to market, operational effectiveness and innovation in a highly competitive environment
- An enterprise project portfolio management solution can help manufacturers position themselves in the new competitive landscape.
- Time-to-Market: The Need for Speed in the Automotive Industry
- Bringing new vehicles to market quickly has never been more challenging. To bring new models to market on-time and on budget, automakers need...
- Application Rationalization Scorecard: Analysis to Action
- This paper details a proven method, used most recently to evaluate a financial services application portfolio. At the method's core is the scorecard....
- Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
- This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
All Financial IT White Papers
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the...
- Endpoint Data Management: Protecting the Perimeter of the Internet of Things Not surprisingly, "Internet of Things" (IoT) and Big Data present new challenges AND opportunities for enterprise IT. Teams need to harness, secure and...
- All Financial IT Webcasts