https://www.efinancialcareers.com/news/citi-s-7-000-laid-off-staff-were-paid-an-average-of-214k-each
4 replies (most recent on top)
And most of the citi employees who were let go were director, senior director, and low tier executives, meaning their weekly payout will be significantly higher than most. The same applies to WF - you make more money then your weekly payout is higher. Citi tried to eliminate the middle management tier.
Citi will almost certainly complete their process quickly and with less negative impact. WF will F it up, mainly because the execs don't trust their directs, so they blindly hack away instead and that invariably leads to failures of various kinds. WF is also cheap, which makes tormenting everyone until some leave on their own is the preferred option. Citi actually gives an S about performance of the employees that won't be S canned. WF doesn't. I don't know if Citi will be successful in "right sizing" or not, but like I said, WF will F it up.
Interesting article. They are a third of the way done (7K of 20K) and spent 258m on "repositioning costs". It will be interesting in a few years to compare Citi with Wells on this movement. I sense that Citi has flattened the hierarchy while Wells has just lost the leaves (or replaced them with I&P) and have kept the hierarchy (and IT siloes) in place.
The benefit of Citi's reorganization is that management is allowed to run the bank like "operators" instead of people running a holding company. "It's much easier to get things done," she added. I don't think CS wants to run the bank like an operator --- he is comfortable running it as a holding company. Consider how many CIOs are in this bank.....
That’s not what the article said. It said they spent that much on laid off employees on average - the employees weren’t paid that amount.