) has announced 100 job cuts on New York's Long Island, according
to a Bloomberg report. The jobs cuts are part of a greater
retrenchment program that includes slashing 5,000 jobs and was
announced earlier this year by Mr. Pandit, the former Chief
Executive Officer of Citi.
According to the Bloomberg report that cited Citi's filing with
the state Department of Labor, notices were being served to the
staff members since July. Further, the employees in the Nassau
County town of Uniondale would bear the impact. It would be
accomplished by March 3, 2013.
This 100 retail bank staff retrenchment of Citi on Long Island
comes as the company counters revenue slouch with expense cut
initiatives. With its new CEO, Michael Corbat, Citi remains
committed to continue with the efficiency improvement measures
and the expense management efforts.
In the midst of a challenging operating environment, lower
returns and stringent capital norms, many Wall Street banks are
trimming businesses to meet the aforementioned challenges. In
addition to Citi,
Bank of America Corp.
) is rightsizing its business and slashing jobs to address
We believe that amid a tepid economic recovery, bolstering
revenue has become a challenge. Therefore, sustaining and
elevating profitability through cost reduction measures including
job cuts is what several banks are looking at. Therefore, until a
recovery in revenue occurs, such actions are anticipated to
continue and help in strengthening profit levels and capital
Citi currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. Considering its fundamentals, we also
have a long term Neutral recommendation on the stock.
BANK OF AMER CP (BAC): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
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