Citi Slashes Jobs, May Keep Bonuses

We took a gander at two separate AP reports about the mega-job slash announced by Citigroup Inc. (C) this morning.  Both stories reported the 53,000 jobs the company is cutting follows 22,000 laid-off Citigroup employees announced last month.  But in the second report, it cited that Citigroup’s chairman “did not rule out the likelihood that Citi’s leaders would go without bonuses this year.”

Well, thank goodness they’re not ruling it out.  Let’s see: how many executives’ bonuses can 75,000 jobs pay for?

All snarkiness aside, Citigroup has obviously seen better days than this.  Analysts have been revising quarterly and fiscal year estimates downward at about the rate of gravity.  No fewer than 8 analysts in the past month expect a worse performance from Citigroup, Inc.’s December quarter, and 9 analysts have taken down fiscal year 2009 numbers in just the last 30 days.

Curiously, Citigroup’s year-over-year growth estimate for its 4th quarter is +101%.  The Zacks Rank on the company is currently #3 (”hold”), even though the loss expected for fiscal year 2008 has more than doubled in the past quarter -$2.26 per share from what was then -98 cents.

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