Citi (C) to Cut More Jobs, Pare Bonuses Amid Volatile Macro Environment
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Price: $59.14 +1.41%
EPS Growth %: -15.1%
Financial Fact:
Provision (benefit) for income taxes: -7M
Today's EPS Names:
MAXN, CSTR, ACU, More
EPS Growth %: -15.1%
Financial Fact:
Provision (benefit) for income taxes: -7M
Today's EPS Names:
MAXN, CSTR, ACU, More
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Citigroup (NYSE: C) is ticking a little higher Thursday following headlines that the bank might pare back bonuses and trim even more staff moving forward.
According to Bloomberg, Citi will but bonus pay by as much as 10 percent while eliminating 150 more positions from such segments as equities trading and underwriting. With about 17,000 employed at the bank, the worker reduction won't have a significant affect, but the bank will garner investor sentiment as it looks to eliminate unnecessary positions and streamline operations further.
The latest round of cuts are said to have been in the works while Vikram Pandit was still at the helm. Trading fell from $433.6 billion through the first nine months of 2011 down to $386.3 billion for the same period this year. Underwriting revs fell 20 percent over the same time frame to $463 million.
More than just Citi, tough capital requirements, a slump in trading, investment banking revenues easing, and the European debt crisis are hitting all financial institutions.
The latest round come following a 1,200 reduction announced last January and 350 introduced in July.
For bonuses, not all will see a reduction as manager's decide who gets what based on performance. The cut is also down from last year's 30 percent reduction, Bloomberg noted today.
Shares are up 1.2 percent in mid-morning trading.
According to Bloomberg, Citi will but bonus pay by as much as 10 percent while eliminating 150 more positions from such segments as equities trading and underwriting. With about 17,000 employed at the bank, the worker reduction won't have a significant affect, but the bank will garner investor sentiment as it looks to eliminate unnecessary positions and streamline operations further.
The latest round of cuts are said to have been in the works while Vikram Pandit was still at the helm. Trading fell from $433.6 billion through the first nine months of 2011 down to $386.3 billion for the same period this year. Underwriting revs fell 20 percent over the same time frame to $463 million.
More than just Citi, tough capital requirements, a slump in trading, investment banking revenues easing, and the European debt crisis are hitting all financial institutions.
The latest round come following a 1,200 reduction announced last January and 350 introduced in July.
For bonuses, not all will see a reduction as manager's decide who gets what based on performance. The cut is also down from last year's 30 percent reduction, Bloomberg noted today.
Shares are up 1.2 percent in mid-morning trading.
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