Old Vik at Citi sent a memo to his minions to explain how the future of Citi is bright and sunny. Our friend Bess Levin at DealBreaker got her hands on it. The subtext of it is that a whole lot of Citi employees just found out that they are “non-core” and are getting spun off into a blackhole.
From: [email protected]
Sent: Friday, January 16, 2009 7:15 AM
Subject: Realigning Citi
Dear Citi Colleagues,Today we are announcing more than our fourth quarter earnings. We are
posting our roadmap back to profitability and taking the first step in
the next phase of our transformation.
Given the economic and market environment we have decided to accelerate
the pace of change we announced last year by realigning Citi into two
distinct businesses: Citicorp and Citi Holdings.
This realignment will preserve what makes Citi unique; our global,
universal banking footprint and a unique franchise rich in history and
enduring client relationships. It is also consistent with the strategy
we announced at Citi Day — to position the company to capitalise on the
best opportunities for global growth in a rapidly changing financial
By realigning Citi now we open up the best set of options for moving
forward in the right direction as quickly as possible. You can find
details of the path forward here:
I want to thank you for working hard to get us this far despite what has
been a tumultuous time not just for Citi but for you and your families.
This structure will enable us to sharpen our focus on driving
performance in our core businesses while, separately, realising the
greatest value from our non-core assets.
With lower risk and a streamlined set of businesses, we expect Citicorp
to be our high-return, high-growth business over time. It will include
“core” Citi and be a relationship-focused global bank to businesses and
Citi Holdings includes a great set of businesses with strong market
positions. However, these assets do not sufficiently enhance the
capabilities of Citi’s core businesses. The leadership of Citi Holdings
will focus on running these businesses well, tightly managing risks and
maximizing the value of these assets by being alert to appropriate
divestiture and partnership opportunities that may emerge.
Beginning today, we will manage the company under this structure. Both
units will have their own dedicated management teams, and will start to
reflect this structure with management reporting in the second quarter
of this year.
Thank you all for working so hard to serve our clients and customers and
return Citi to sustainable financial success.