2012 Announced Layoffs: 11,000
Stock Performance Since Announcement: +12%
Citigroup (NYSE:C) announced in December that it was cutting 11,000 jobs. Though perhaps the biggest pink slip came earlier in the year — to CEO Vikrim Pandit, who apparently didn’t move quickly enough for the board. I suspect there is more to the story with Pandit, but that same board put noted cost-cutter Michael Corbat in place, and layoffs are on the way.
The layoffs hit what was an important core at Citi: Global consumer banking, as it will reduce operations in Pakistan, Romania, Uruguay and Paraguay in addition to closing 84 branches worldwide.
Because the layoffs were announced only a month ago, it’s hard to gauge their effect. But the Street took immediate notice, juicing Citi shares 6% on Dec. 5.
Closing operations and announcing layoffs isn’t going to help increase revenues, however. Citi’s sales have declined for eight straight quarters, including a 29% drop in the most recent period. Meanwhile, how and where Citi expects to eventually grow is unclear.