Citigroup Gets Thrifty: Cuts Color Copies, BlackBerrys

NEW YORK (AP) -- Citigroup Inc. isn't just eliminating jobs to slash costs -- it's also clamping down on color copying and BlackBerrys.

In a recent memo to Citigroup employees detailing new efforts to trim expenses, John Havens -- who runs the company's institutional clients group -- wrote that "color copying and printing should only be used for client presentations," and that "presentations should be printed double-sided to reduce unnecessary paper usage."

Additionally, the bank is reviewing employees' BlackBerry use, and is now requiring pre-approval for the devices.

"Only necessary business related calls will be reimbursed," the memo said.

The memo, dated Aug. 15, also said that Citigroup will no longer hold meetings outside its own facilities for internal purposes, and that it is limiting external training and the use of management consultants, among other resources.

The moves are yet another step in the bank's attempt to become profitable again after three straight quarters of losses. Citigroup, currently the nation's largest bank by assets, has already eliminated more than 14,000 jobs this year and raised about $40 billion in capital after losing a cumulative $17.4 billion during the last quarter of 2007 and the first two quarters of this year.

The bank has been selling off its assets as well. During the second quarter, Citi lopped off $99 billion from its total assets, which stood at $2.02 trillion as of June 30. In May, Chief Executive Vikram Pandit announced that the bank would reduce its balance sheet by about $400 billion to $500 billion over the next few years.

Citigroup shares rose 23 cents, or 1.3 percent, to $17.84 Tuesday.

Analysts are split over whether Citigroup will post a profit for the third quarter, but on average, they expect a profit of 3 cents per share, according to Thomson Financial.

Comments

[ramal]

Citi??? Pity!!! Buh-bye.

[MNinWI]

Do you think Chief Executive Vikram Pandit offered to take a pay cut to help out? hahahah-just joking of course.

[AtTheMoon]

now the only wasteful livin' large entities are the contractors for Dubya's wars...

[ShawnMichel]

Watching this hateful corporation go down in flames is pure joy.

[geobushono]

Is this the same Citi Corp that paid Robert Rubin, $17,000,000 to do nothing.?...yeah, our Robert Rubin, t

[YouDisgustMe]

yikes....now that's what i call PENNY PINCHING!!

[iambusto]

I doubt the naysayers would be right in case of Citi.

Citi will eventually have to undergo major restructuring though and shed a lot of divisions to shore up the balance sheet.

However, i disagree that there will be a fed bailout for either C,JPM,BAC.

[ashabot]

Wah-fvck1ng-wah. They shouldn't have been doing so many color copies in the first place. Things will have to go pretty far south before I start feeling sorry for wasteful, narcissistic behemoths like this.

[TheSecularist]

LOL. NPR reported this morning that Citigroup was found guilty of skimming negative credit card balances for twelve years. If a customer paid more than they owed, Citigroup would keep the money for itself rather than return it to the customer. Usually, the report said, the customers were poor or lower income people. Now, Citigroup admits no wrongdoing (over a 12-year period) and has been ordered to repay the customers with 10% interest.

[sandiegoconservative]

Take advantage of the situation if you can. My wife and I have very few credit accounts- one card for Goodyear for car repair emergencies, one card for misc. purchases from Discover if needed, and a Best Buy card we never use.

We wanted to make sure we had money available if there was ever some emergency that wiped out our savings, so we applied for a Citi card for emergencies. We were approved on the spot for a decent line of cretit at 7% interest max.

[studlyguy]

So what bank is it going under Citi,Wells Fargo, B O A,Washington Mutual,will know probably sometime right after the elections will be my prediction.depression 2009 here we come no matter who becomes Prez ,won't be able to stave off the inevitable ,the damage is done.

[FrankenPC]

I totally agree. The economy is like an oil tanker which takes five miles to come to a stop (or so I've heard). We won't see the worst of the damage for another several years. Which will be great if McCain wins. He will have NO CYA to fall back on. And will be horrible if Obama wins...yet another Congress and Senate filled to the brim with R's.

[geobushono]

Mike Malloy got attacket here at huffpo a couple weeks ago, by a staff writer, for stating that EXACT (correct ), analysis.
The repugs are doing all they can, with Congress' help, to stop the crash until after Nov.

[jcranman]

They need to just get more of their customers money like by skimming off their positive credit card balances, imposing unnoticed fees and assessments and unilaterally bumping up interest rates, shorteing the grace period, incurring interest from the moment of purchase, raising annual credit card fees, not really getting appraisals just charging for them, same with credit reports. Of course, employee costs are outrageous, they like to hire entrepreneurs, so let them get their own health insurance, stop matching 401k investments, cut vacations, etc. There are many ways C will find to get themselves back on top as a top notch financial services company.

[funkalicious]

Exactly and it helps to have friends in Government like Joe Biden,and John McCain to make sure you can wring every ounce of blood from the populace...

[bushbehindbars]

And most of the board members of these nasty, predatory companies are returdlicans, too. That should be a new campaign slogan: Returdlicans: Bad for business. Bad for America. Bad for the world.

[SoCalNick]

This despicable company has been rapeing the consumers for YEARS!!! BILLIONS of dollars a year in "Late fees" for payments they CLAIM are late. Boosting even A grade peoples interest rates to the MAX out of the Blue for NO REASON all the while Paying BUSH and CO to change all of the Laws so they can not only get away with it but make it IMPOSSIBLE to escape them after they do you in.

If BUSH Bails them out it will be a FEDERAL CRIME!!!!

[Tom95134]

This should start a run on Citi Group's bank.

[sposton]

They are too big to fail! We will all pay for this. Free enterprise, my foot; socialism for the rich - that's is what we've got.

[likeicare]

Ohhhh, boooo-hoooo.

Bet we'll get stuck with their eventual "bailout" tho.