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.
- 18 Hot IT Certifications for 2014
- CIOs Opting for IT Contractors Over Hiring Full-Time Staff
- 12 Best Free iOS 7 Holiday Shopping Apps
- For CMOs Big Data Can Lead to Big Profits
- Slideshow: 5 ways to lock down your mobile device
- Slideshow: 10 mistakes companies make after a data breach
- How to rob a bank: A social engineering walk through
- Which smartphone is the most secure?
China says to Chiang Kai-shek all Bitcoins at the door.
China marches long and hard over internal financial institutions, proclaiming that Bitcoins "should not and cannot be used as a currency". The news sent Bitcoin exchanges into a dive like cormorants in the deep China Sea. But all is not lost -- or is it? Bitcoins have been bubbling back to the surface, or has China's stance drained all enthusiasm? In IT Blogwatch, fearless leaders and bloggers quote pearls of wisdom from the little red book of Bitcoin. Not to mention: Financial advice from Whiz and Ice...
- 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.
- Make or Break: New Auto Products Must Go To Market On Time
- This Webcast quantifies the value of time to market for the auto industry and highlights how Primavera Enterprise Portfolio Management can help organizations.
- Stock Shock: The effect of project and portfolio management on share price
- In this independent report, you'll see the intrinsic connection between long-term capital investment and short term market performance -- and how this can...
- Hedge Your Bets
- This report explains how visibility and increased governance is key to reducing risk.
- In the Firing Line
- CEOs Are Increasingly Being Held Accountable; How susceptible is the CEO's reputation to poor performance across the project portfolio?
- The CISO's Guide To Virtualization Security
- This guide describes the security challenges within virtualized environments and shows how to apply the concepts of Forrester's Zero Trust Model of information... All Financial IT White Papers
- Live Webcast Research Report: 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...
- Live Webcast The Freedom to Run Your Business Your Way Vendors are challenged to create flexible systems that customers can tailor to particular business strategies and industry needs. But the flexibility should not...
- Live Webcast The Business Value of Human Capital Management for Finance View now >>
- HR and Finance Were made for Each Other View now >>
- The Value of Human Capital for Finance Professionals View now >>
- The Business Value of Human Capital Management for Finance View now >>
- The Freedom to Run Your Business Your Way Vendors are challenged to create flexible systems that customers can tailor to particular business strategies and industry needs. But the flexibility should not...
- Research Report: 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...
- All Financial IT Webcasts
Computerworld's Best Places to Work in IT 2013 list featured Quicken Loans, Securian, Vanguard and other top finance organizations. Honorees say the distinction helps them recruit top talent and boost staff morale.
Want to join this elite group? Nominate your organization for our 2014 list.