So very rough back of the envelope call stillcome back at 20k+ jobs
200k fully loaded avg employee cost (inflated by upper levels) or 50k for average 3 month severance package. $1B/50K = 20K jobs
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Bigger than expected.
1 billion cost:
200 million spent on ~500 employees Sep-Nov (execs and MDs level) = 400k per worker
800 million remaining
16,000 employees at 50k each
20,000 employees at 40k each
40,000 employees at 20k each
@1toj+1pWvd9fk I recall seeing that it was ~500 between the two cuts, roughly 200 at the very top near the beginning then 300 more with the most recent cuts. With that said, I also am not sure how they could have spent $200mil so far firing 300-500 people unless their roles have a much stronger severance agreement than the layman or there's more cost to laying people off than severance + benefits. Hopefully it's the latter as that would further reduce the estimate I posted earlier.
I'm just glad Citi leadership has started dropping more quantitative figures so we can at least start to hone in on what the impact could be
@cmt+1pWvd9fk: As much as I think the number of layoffs will be much higher than that, I think you are probably correct, but it likely implies that they are focusing on more expensive employees.
Additionally, I am thinking about the $200M figure for 4Q, but that sounds unbelievable if it is only meant to reflect the 300 or so employees who were let go, even if they all were MDs.
Op is spot on. Looking at 20k RIF
I first though the same but now I'm thinking it'll be smaller.
Mark Mason said today at the GS fin svcs conference that $200mil of the ~$1b reorg charges would come from this quarter, meaning the other $800mil would come from Q1 of FY24. If we assume the same "repositioning costs" per employee from the ~7k layoffs from earlier this year ($600mil/7k employees = $85k per employee) , that gets us to an additional ~9,300 employees laid off.
It's a simple estimate but we only have a few data points to base assumptions on, hopefully this is the case and less people will lose their jobs
Source: https://www.cnbc.com/2023/10/19/big-banks-cut-thousands-of-jobs-more-layoffs-coming.html
Citigroup's cuts section for numbers of previous layoffs