[lbo-talk] Adventures in outsoucing

[Carl Remick]

[It's hard to believe it was just 20 years ago that I was a speechwriter at 
American Express Company, a lead member of the Coalition of Service 
Industries, hymning the glories of the emerging service economy that was 
going to be America's salvation from manufacturing deindustrialization.  
Even at the time I knew it was twaddle; nevertheless, I'm still stunned when 
I read news like that below.  Sure, outsoucings may still remain relatively 
minor compared to total US employment, but no doubt they are *the* most 
important marginal change occurring ... and marginal change is of course the 
only factor that really matters.  No question about it:  The US economy is 
dooomed.]

April 11, 2007
Citigroup to Lay Off 17,000 in Overhaul
By ERIC DASH

Citigroup announced today that it would eliminate or reassign more than 
26,500 jobs as part of a sweeping overhaul to cut costs and streamline the 
global bank’s sprawling operations.

Under intense pressure from investors, the company announced plans to lay 
off more than 17,000 workers, with the first pink slips coming this week. 
About 9,500 jobs will be moved to locations overseas or around the United 
States where the cost of doing business is lower, from more expensive 
locations like London, Hong Kong, and New York, where the company’s 
headquarters are based. Two-thirds of those jobs will be eliminated through 
attrition.

Roughly 8 percent of Citigroup’s 327,000 workers, from entry-level consumer 
bankers to senior executives in the investment bank, will be affected by the 
restructuring. All five of its major business divisions will face cuts.

“Ultimately these changes will streamline Citi and make us leaner, more 
efficient, and better able to take advantage of high revenue opportunities,” 
Charles O. Prince III, Citigroup’s chairman and chief executive officer said 
in a statement. ...

<http://www.nytimes.com/2007/04/11/business/11cnd-bank.html?_r=1&hp=&adxnnl=1&oref=slogin&adxnnlx=1176294116-scIrO2g0dRWcBxBEwhGBcA>

Carl

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