Citi cuts 50,000 jobs

One of the articles I just read on this seemed to indicate that most of the Citi job cuts will be through "asset sales". To me, this seems to mean that they're not going to outright lay off 50k people, but rather that their headcount will decrease as a result of the sale of these businesses.

"Fortunately, none of this will affect Manhattan real estate"

you know you're the only one who says that, and yet you think the sarcasm is clever.

"To me, this seems to mean that they're not going to outright lay off 50k people, but rather that their headcount will decrease as a result of the sale of these businesses."

No. Because usually to sell a business you sell it to someone who has a similar business and the reason they do that is to cut costs while increasing revenue. The sale of Merrill Lynch to BofA is an example - some new business for Bofa (brokers, investment bankers) but plenty of overlap in terms of trading, back office, IT - all to be axed.

"you know you're the only one who says that,"

No, actually, there's steveF, and now happyowner aka LICC aka tech_guy aka who knows who else, and petrfitz aka yourlandlord (who's not) and all the people who quote the brokers stating that just because Wall Street is dying doesn't mean that property prices will collapse.

Compare a real cause and effect - Wall Street makes it go up, Wall Street makes it come down - to happyowner's theory that yesterday's prices are determinative of today's prices (which they're not) and you'll see what we're dealing with here.

ah so now we went from will have no affect to will not collapse.

Regardless, you really think its clever?

Was I aiming for "clever"?

less banker wankers in NY means increased quality of life

I can only presume. You make these posts all the time, bad news about Wall St or some other bad news, ending with a sarcastic comment that it doesn't affect real estate. I can only presume you think that the comment is clever or at least amusing, I don't know, something other than lame, repetitive and boring.

"Fortunately, none of this will affect Manhattan real estate"

Fortunately, it won't affect your livelihood, right? All bad news just leaves you unscathed. Right.

Actually, lowery, it hasn't affected my livelihood, but it has affected my stock portfolio.

"I can only presume you think"

The only presumption you seem to have drawn is that I'm writing to you.

But I'm not.

Well, what's the bottom line...are the 53k people based in new york and will they up and leave manhattan???

"The only presumption you seem to have drawn is that I'm writing to you"

no not at all

Apparently so: "something other than lame, repetitive and boring."

That would be your opinion - which I can neither no beforehand nor let it affect me afterward. I just don't care. I haven't seen you post anything particularly interesting not only recently, but ever.

Apparently so: "something other than lame, repetitive and boring."

That would be your opinion - which I can neither no beforehand nor let it affect me afterward. I just don't care. I haven't seen you post anything particularly interesting not only recently, but ever.

Apparently so: "something other than lame, repetitive and boring."

That would be your opinion - which I can neither no beforehand nor let it affect me afterward. I just don't care. I haven't seen you post anything particularly interesting not only recently, but ever.

if all these people are leaving manhattan - where are they going?

I would say the bottom line is some, maybe many, of the 53K people are based in NYC. It is like: (your number here) thousand formerly wealthy residents of NYC are now unemployed and not very employable and of decreasing wealth, a (your number here) percent own real estate and will have to sell kinda desperately, and another (your number here) percent were prospective buyers who won't be buying anytime soon. Now multiply the situation to include as many financials and related industries as you can think of, and the result is just not exactly positive for NYC RE.

Sorry about the repeat post - a streeteasy problem.

so these people who lost their jobs are incapable of finding other jobs or industries where they can make money?

NY is about reinventing yourself multiple times to stay in the game. Some will fall out, others will survive and find ways to make more money than they did before.

"That would be your opinion"

well sure, but I still haven't heard what your point is with these posts, specifically what you're "aiming for" with the sarcastic comments at the end.

and for someone who doesn't care, you sure seem to respond a lot.

i hear that the per word transaltion rate is plummeting faster than the pound. Sorry steve looks like you will have to ditch that manhattan rental for a jersey city studio.

> Some will fall out, others will survive and find ways to make more money than they did before.

Absolutely. But we're talking Wall Street here, and not even a great bank. We're talking about TONS of overpaid middle managers. Yes, some will figure stuff out. But the majority of folks in the middle will end up making a lot less money. And not necessarily in New York.

"others will survive and find ways to make more money than they did before."

Not many. start reading the news.

A lot of the Citi people are not the ones making $1 million+ bonuses. The majority will be rank and file support staff and they are not buying $4 million apartments in Mnahattan and summer homes in The Hamptons.

Certainly, the jobs numbers are not good and more shake-out is to come. From what I am hearing, the worst of the layoffs in the FS industry should be finished by January or February. Of course that could change, but that seems to be what I am hearing at this point.

"Actually, lowery, it hasn't affected my livelihood, but it has affected my stock portfolio."

The "actually" isn't necessary, steve, because you've stated the above numerous and sundry times and if you don't mean to smugly gloat about it, then I'm sure if it only seems that way it's unintentional, in which case it's a sensitivity thing.

Sounds like a great gig you have, steve, and I hope it stays that way for you, but I'm skeptical. Lots of folks are finding these times are affecting them in ways they had never expected, for instance the law firms who expected their litigation practices to be "countercyclical," and eventually had to cut their losses when the expected surge in litigation revenue never materialized. I gather your clients aren't financial institutions. If they are financial institutions, I would be worried if I were you. I also don't believe anything involving written translations is so secure in our global marketplace where Brazilian and Portugese workers are just a click of the mouse away.

"A lot of the Citi people are not the ones making $1 million+ bonuses."

Actually, waverly, the bulk of the cuts are coming among investment bankers. M&A is dead, proprietary trading is being cut back, securitizations are....

Sorry you don't like my "actually," lowery, not that I care about what you like or what you read into what I write. You can be skeptical all you want - I've been very honest about everything else, why not this?

Am I saying that my income is at an all-time high. Actually, yes, though it's slowed down in the 4th quarter. That, however, is nothing unusual, and it's nothing like it was the last downturns I experienced, the Tequila Effect & the dot.com bust, 9/11.

My clients are larger translation agencies without in-house translators who have sales forces all around the world. Their clients are law firms and the legal departments of large corporations.

"in our global marketplace where Brazilian and Portugese workers are just a click of the mouse away."

Fortunately, it's very hard to write in a foreign language, which is why a) foreigners are not competition; and b) global markets help me. I get paid not only for my knowledge of languages, but for my knowledge of the subject matters I translate. Very important to know the difference between the different uses of "relevant" and "material," even though they are the same word in Spanish and Portuguese.

Thanks for your well-wishing, nonetheless.

steve...ok...just how bereft IS your life? why don't you go to a shelter and pick out a dog or maybe adopt a child. get a bit of a life.

Ignoring comment by eah.

yes, i know steve...that's ok.

this goes to Steve's credibility - the ENTIRE world is down and seeing decreasing business but Steve doth protest that his personal world is up higher than ever.

childish.....

steve always wins, that's the game. just because he is lmost fifty, a renter, and alone is not the point. his translation business is thriving. as i have posted...he is that weirdo who will one day drop dead in his rental whilst posting on streeteasy and his neighbors will call the police after the stench begins. one is every building.

Ignoring comment by eah.

Ignoring comment by Your_Landlord.

Without viewing them, I can sense that they are nothing but personal attacks that add nothing to anything.

Guess that makes me psychic, too.

LOL! The last few posts are a little crazy and quite hilarious!

> the ENTIRE world is down and seeing decreasing business

That isn't actually true. The majority of spots are getting hurt, but there are always exceptions.

Steve - they are cutting 52,000 jobs globally with the majority of them being in the I-Bank. That doesn't mean they are cutting 52,000 I-Bankers. The large majority of these poisitions will be in the operations and support functions of the I-Bank plus a number of larger revenue people.

nyc10022 - agreed but I am worried about a "green" bubble in the works.

Waverly - not so sure the majority of the Wall Street layoffs will be done by Feb '09. These newly merged institutions are still trying to come to grips with the full implications of their mergers.

lo888 - The numbers will always be a bit fluid, but I am hearing that the merged entities have a decent idea at this point and most of the announced layoffs should be done by the larger firms by February. But anything can change that, although unfortunately if it does change it is not going to be for the better. If I hear any more on it I will let everyone know.

I can't wait until things are a lot more stable and predictable...

> nyc10022 - agreed but I am worried about a "green" bubble in the works.

Don't disagree there. But that wasn't one of the areas I was thinking...