Citi's Pandit's Secret Turnaround Plan: Sell Divisions, Fire People

After the ouster of Chuck Prince more than five months ago, all eyes are on new Citigroup (C) CEO Vikram Pandit. Pandit is charged with the unenviable task of leading a turnaround at Citigroup after more than $15 billion in losses over the last two quarters. He gets to outline his turnaround plan before Citi’s shareholders today, a scheme which is said to involve $200 billion in asset sales and thousands of firings. Bloomberg:

Pandit may disclose profit targets, cost-cutting plans, including more reductions among the bank’s 369,000 employees, goals for the international units, and assets he intends to sell, such as life insurer Primerica Corp., analysts said. Company officials have said since March that Citigroup plans to dispose of more than $200 billion of loans and securities to shore up capital. The bank also has already announced 15,200 job cuts.

“My fear is they are going to do the great sacrifice at the altar of cost cutting,” said Peter Sorrentino, a portfolio manager at Huntington Asset Advisors in Cincinnati, which oversees $16.7 billion, including Citigroup shares. “They will start throwing bodies out the door. Nobody makes big money cutting costs.”

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