Monday, June 23, 2008

Citigroup To Announce 6500 Layoffs

The employment outlook in NYC continues to darken. It has been widely reported this morning that Citigroup is set to announce a 10% reduction of workforce resulting in 6500 lost jobs. The WSJ reports that entire trading desks in New York and other cities will be fired as well as many staff in the M&A department. Pink slips will be distributed as early as today.
Citigroup May Cut 10% of Staff (CBSMarketwatch)
Citigroup Slashing Investment Banking Jobs This Week (Reuters/UK)
Citigroup To Cut 10% Of Investment Banking Jobs (WSJ)Share B

2 comments:

  1. Please provide, based on the darkening employment picture on wall street, your thoughts on manhattan real estate values over the next two years.

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  2. Wall Street bonuses will likely be cut in half this year (obviously). Much depends on the dollar and the activity of foreign investors armed with cheap dollars and petrodollars.. The national market is expected to improve during 09'. I think the core Manhattan market will be fine. The next 6 months are likely to be quieter than say a year ago and buyer incentives and concessions will likely increase. It should be a good time to negotiate. That said, the 421-a condo surge is over, so the amount of new (condo) inventory on the market in 2009 should be much lower. I am long term bullish on NYC and better priced LIC as well. I think 09' will end up being a pretty good year when all is said and done. So, if you can get a good deal now or over the next 2-3 quarters, I would take it.

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