What would Citigroup Inc (NYSE:C) do with major chunk of employees?
In 2012, Citigroup Inc (NYSE:C) was the 5th largest mortgage originator in the United States. The company is all set to cut approximately 1,000 jobs in its mortgage business out of which 100 will be in Irving. A Citigroup spokesperson, Mark Rodgers said that a major chunk of the employees who are being laid-off will be realigned to some other work at the same site. Though this is not an easy task, it indicates that the company is earnest about improving operational efficiency, making strategic changes and adapting to the market changes and also positioning the business in a better way, for the future.
The worst affected
The jobs in Irving are from the mortgage fulfillment department. The other employees are from the defaults and underwriting departments said the company in its emailed statement. The area that has taken the strongest knock is Las Vegas where 700 jobs will be cut. Meanwhile, across the country, 150 jobs will also be affected and most of these are the work-from-home ones.
The affected functions
Rodgers also said that those who have not been reassigned to any other job roles by 22 November will be paid for 2 months. Post that, the severance pay will they get will be based on the number of years they have worked with the bank and the job-transition benefits will be given accordingly. After this latest job cut, Citigroup Inc (NYSE:C) will now have around 5,700 employees at the Irving facility. These mainly include those in the credit card and some other functions while some are in mortgage operations.
Other institutions affected too
Bank of America and Wells Fargo are the other banks that have been downsizing their workforce since the 70% drop in refinancing that has taken place since 2012 September. In July, the bank announced the closure if its Danville III facility which resulted in 120 job cuts. At the start of this month, the bank said that it had also fired few of its telephone agents.