Has anyone heard that the severance pay is going from 1 paycheck/2 weeks of pay per every year of service to 1 week of pay per year of service? I’m really hoping it’s not true.
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I am a contractor with Citi London and I am worried.
Will Citi lay off contractors first and then permanent employees? How does it work?
@jp - Maxes out at 52 weeks pay. All years past 25 of service mean NOTHING
Since Citi paid a total of about US$9 Billion over the past 15 years, No wonder it's destitute and broke !
Citi has been and will continue to Nickle and Dime employees for every red Cent Penny, all while CEO Jane, her minions, the MDs and Directors collect Millions of Dollars on the backs of Svckers-Employees !
But yet, they Still wonder why they're hated and vilified on this and other Internet sites!
@fk I think you meant weeks. But I am looking at the official separation pay plan now in Citi for you (eff 1-1-26) and it still says 2 weeks of base pay for each full 12 months of service.
The 1 year severance can be confirmed. Several employees at the Johnson City/Gray TN location were recently informed that they will be only be given 1 year instead of the 2 years for each year of employment.
God I hope not. That would be such a gut punch and a reason why I haven’t left yet…I know than I’m entitled to almost a year ….
The problem is the market is so F’d. So voluntary attrition is very very low…
I’d be curious what was modeled vs reality
Citi's $7 Billion fine from year 2008 from Google below.
Citi is truly an Ugly Dog Lying Dishonest Deceitful Treacherous Sh!tibank !
In July 2014, Citigroup agreed to a massive $7 billion global settlement with the U.S. Department of Justice and federal-state partners to resolve investigations into defective mortgages and misleading investors leading up to the 2008 financial crisis.
Settlement BreakdownThe $7 billion penalty for packaging risky sub-prime mortgages into toxic securities included:
$4 billion civil penalty paid directly to the Department of Justice.
$500 million allocated to state attorneys general and the Federal Deposit Insurance Corporation (FDIC).
$2.5 billion dedicated to consumer relief, such as affordable housing investments and residential loan modifications.
In 2014, Citigroup paid $7 billion to settle an investigation into risky sub-prime mortgages.
The settlement stems from the sale of securities made up of sub-prime mortgages, which were at the center of the 2008 financial crisis [-- BBC News].
Core Accusations
Concealing Risks:
Authorities found that the bank ignored internal warnings and downplayed the severe defects of loans packaged into mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) between 2003 and 2008.
Admission of Fault:
Unlike some other financial crisis settlements, Citi explicitly admitted to detailed statements of facts acknowledging its conduct in misleading investors about the quality of these financial products.
Add to the infinite List of Signs on the wall that Citi is soooo Broke A$s Poor (because Citi is) and impecunious, and Nickle and Diming its employees for every Penny:
For some jobs posted in Workday, Citi advertises Internal employees who refer job applicants who are hired will get a $5000 referral bonus.
After Citi identifies the job applicant they want to extend a job offer to, Citi deletes the job posting, then reposts the same job under a new, different Job Requisition Number so that it looks like a brand new job and so that the Internal Employee who made the candidate referral can NOT collect the $5000 referral bonus !
In conclusion, Job Referral Bonuses are a scam, RICO and LIE at Citi !
Not surprising coming from a Racket, Citi, that committed the largest mortgage fraud in history in year 2008 for which Citi was fined US$7 BILLION !
Every country has a different policy.
Been a rumor for years.....time will tell.
@OP yep. I heard starting in 2027. I thank my lucky stars (as weird as that sounds) that they stole my job from me in 2026 so I could still get the 2 weeks.
@af That's right-I remember that occurred
Keep an eye on the employee handbook under separation pay.
From Citi's legal viewpoint, you and any other employee can be as P!ssed as you want to be.
You can be Niagara Falls P!used and made as H3ll.
But if Citi can no longer afford to pay, it will Not pay WARN, severance, PTO-salary etc..
Citi will pull every legal maneuver loophole it can find, just like the Greedy PIGS Health insurance industry does in denying up to 40% of medical claims in the USA !
You're assuming Citi can still afford to pay WARN money (2 or 3 months worth depends on U.S. State you're in), plus severance, plus PTO-Salary.
Citi can decide it's soooo Broke A$s Poor (because Citi is) and impecunious that Citi decides to cease paying some or all of the above categories.
Look at the Signs on the wall:
Low or zero salary increases.
Low or zero bonuses.
In-seat promotions reduced to 5% of population, steady decline from 40% since year 2018.
Internal Transfers-new jobs get only a Slap in the Face 👋 10% Salary increase. But external new hires are given the highest end of the salary range.
It used to be a 20% salary increase to accept a new internal job. "Career Mobility" is a fake farcical joke comedy at Citi. 🤡
- Now Citi is looking to reduce severance To 1 week for every service year, down from the industry standard of 2 weeks.
The List goes on and an.....ad infinitum.......
@b1 If they officially update the separation pay plan, a disgruntled lawsuit won’t have any standing. It is what it is at that point.
As an employee of over 20 years, although I don’t want to be laid off (not ready to retire yet and extremely happy with Citi, my role, my boss, and my colleagues), I have always found a little peace in knowing if I get laid off, I get just shy of a year of my six figure salary before taxes. If the severance calculation changes and layoffs continue, MANY tenured folks like myself will be pi---d.
@aw I don't think there would be too many sympathetic jurors to Citi's cause. Imagine asking why they are only paying one week's pay now while others got two weeks. Easy win in court if you ask me.
@as Citi had lots and lots of management fat to cut in the technology area, at least as of last winter.
MDs reporting to MDs reporting to MDs, rent-seekers often not knowledgeable of the business that they were supporting and the tech/data they were managing. They spend all day running from one meeting to the next.
Such are the hidden costs of "globalization." Yes, code-writing is cheaper in Asia than in North America. But these unit cost savings are swallowed up by the cross-time-zone bureaucracy required to coordinate implementation and delivery.
Something global "strategists" never mentioned in their slideshows.
@am hes obviously FOS. You can say it.
@an You're not entitled to anything. Also, because of WARN you are at least guaranteed and initial 2 or 3 months and there is severance and unemployment. Not sure how you would fight their cut.
The calm Before the storm.
Layoffs are ephemeral and produce only a temporary bump in stock price and other metrics.
You may have initially cut fat. But you can only cut so much until you're cutting bone, the skeleton.
Citi has two-thirds 220,000 employees, of JPMC's employee population, and it's still struggling.
This net 220 is down from 250 in 2022.
Without the U.S. Government bailout money $476 BILLION from year 2008 Citibank would NOT even be alive today. It's truly an Ugly Dog.
https://www.cnbc.com/2011/03/16/citigroup-tops-list-of-banks-who-received-federal-aid.html
Its not uncommon for firms to reduce severance in later rounds. My previous firm was far more generous in round 1-3 than 7-8.
If this is true, it's a lawsuit waiting to happen. Can you imagine a lawyer dragging Citi to court asking a representative from Citi to articulate why their client only got one week's pay for every year worked while others got two weeks?
@ae Not saying you're full of sh-t, but can you explain this?
Citigroup's Q2 2026 Earnings Release reported an EPS of $3.15 and total revenue of $24.77 billion, beating analyst estimates and marking its best quarterly revenue in a decade.
📊 Q2 2026 Financial Highlights
Net Income: Reached $5.8 billion, a 45% increase year-over-year.
Revenue Growth: Up 14.5% year-over-year to $24.77 billion.
Investment Banking: Jumped 34% to 44% depending on sector measures due to capital markets activity.
Dividend: Increased quarterly dividend to $0.67 per share.
🗓 Upcoming Earnings Date
Next Report (Q3 2026): Scheduled for Tuesday, October 13, 2026.
In its Q2 2026 Earnings Presentation, Citigroup reported a highly stable and resilient liquidity position, comfortably exceeding regulatory requirements.
🔎 Key Liquidity Metrics
Liquidity Coverage Ratio (LCR): Maintained an average LCR of 114%, flat compared to the previous quarter and well above the 100% regulatory minimum.
Available Liquidity Resources: Totaled over $1 trillion in high-quality liquid assets (HQLA) and available credit rails.
Deposit Base: Increased 3% to $1.5 trillion, driven primarily by strong inflows of high-quality corporate operating deposits within the Citi Services segment.
So basically, instead of reducing severance based on tenure from 2 weeks for every year of service To 1 week, Lehman Brothers completely stopped any and all payments entirely.
Every employee who was terminated (and that was 100% of the employee population), fired, laidoff, whatever, received Zero. Nothing at all, Not even only 1 week for every year of service.
The writing has been on the walls since year 2022. Citibank is on its way to bankruptcy. A simple Google search for the question, "Before lehman brothers collapsed did they reduce severance from 2 weeks to 1 week?" showed the following response:
No, Lehman Brothers did not officially reduce standard severance from two weeks to one week before collapsing. Instead, what actually occurred was a series of chaotic and sudden cuts that left employees with significantly reduced or completely canceled payouts.
[1] (https://gothamist.com/news/lehman-employees-say-good-bye-to-severance-packages)The progression of events regarding Lehman's severance packages unfolded as follows:
Standard Packages Before the Collapse: Employees who were laid off during the workforce reductions leading up to September 2008 initially received standard, tenure-based severance agreements.
For example, some long-term employees were promised bi-weekly pay and health insurance extensions lasting for more than a year. [1] (https://www.nytimes.com/2009/09/15/opinion/15pedreira.html),
[2] (https://nypost.com/2008/10/04/lehman-staff-gets-the-shaft-in-severance/)The Sudden Disruption (UK Employees): When Lehman Brothers filed for bankruptcy on September 15, 2008, thousands of workers were immediately terminated.
In London, administrators capped immediate statutory payments, resulting in many employees unexpectedly walking away with minimal statutory sums (roughly £700 to £800), rather than their full contractually expected packages. [1] (https://www.thetimes.com/world/us-world/article/failing-lehman-in-100m-payout-plan-qt388v6c2lz),
[2] (https://www.forbes.com/2008/09/16/lehman-brothers-london-markets-equity-cx_ll_0915markets33.html), [3] (https://www.foxlawyers.com/wp-content/uploads/2015/10/Lehmans-fired-UK-staff-get-800-pounds.pdf)
Complete Cancellation Post-Bankruptcy: For former employees who had already been laid off and were relying on ongoing "salary continuation" checks,
Lehman canceled all remaining severance payments just weeks after the collapse. In a letter dated September 30, 2008, the bankrupt estate notified former staff that it was "no longer able to provide the salary continuation" and stopped all checks as of October 3.
[1] (https://www.law360.com/articles/71833/lehman-cuts-off-severance-for-ex-employees), [2] (https://www.independent.ie/business/world/lehman-said-to-cancel-ex-employees-severance/a/147915312.html)
According to The Independent, “Lehman Brothers is unfortunately no longer able to provide the salary continuation or other payments described in your separation agreement...
As a result you will not receive a payment on Oct. 3 or after.”Rather than a structured policy shift downsizing the math of the package formula from 2 weeks to 1 week, the collapse caused an abrupt, total termination of severance for rank-and-file workers.
[1] (https://nypost.com/2008/10/04/lehman-staff-gets-the-shaft-in-severance/)
Heard this as well.
I heard this as well. Of course through the grapevine and the person didn't know if it was true or just talk