MEDIA ALERT: December 5, 2012
Smith Expert and Former Citigroup Executive Cliff Rossi
Comments on Citi Job Cuts
Robert H. Smith School of Business finance professor and former Citigroup
Inc. senior executive Cliff Rossi has weighed in on Citi’s plans to cut 11,000
jobs from its global consumer-banking unit. The move entails closing 84
branches, including 44 in the U.S.:
“These latest cost-cutting measures get Citi focused back on efforts to
improve their operating efficiency relative to their peers. Citi's dollars of
revenue generated per employee lag behind their competitors and so this
announcement is not surprising.
“Still these efforts are really short-term and do nothing to address Citi's
longer-term prognosis.
“The company still has to address its legacy businesses that remain in Citi
Holdings and to figure out strategically what direction the company needs to
head. Ever since it lost the opportunity to buy Wachovia, it has operated in
many U.S. banking markets at a competitive disadvantage to its peers due to its
smaller branch footprint. It does have a significant international presence but
finds itself carving off unprofitable segments overseas. Ultimately, for Citi to
regain its prominence among the largest banking institutions, it will need to go
well beyond cost-cutting measure and tackle the harder strategic questions of
operating in a challenging environment.”
Prior to joining UMD as an executive-in-residence and Tyser Teaching Fellow
in the Robert H. Smith School of Business, Rossi served as managing director and
chief risk officer for Citi’s Consumer Lending Group where he was responsible
for overseeing the risk of a $300+B global portfolio of mortgage, home equity,
student loans and auto loans with 700 employees under his direction. While there
he was intimately involved in Citi’s TARP and stress test activities.
Contact Rossi at 301-908-2536 or
crossi@rhsmith.umd.edu.
Read his bio.
About the Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader
in management education and research. One of 12 colleges and schools at the
University of Maryland, College Park, the Smith School offers undergraduate,
full-time and part-time MBA, executive MBA, MS in business, PhD and executive
education programs, as well as outreach services to the corporate community. The
school offers its degree, custom and certification programs in learning
locations in North America and Asia.
