License to Layoff: Citi's China Tumble and the Global Banking Bloodbath

Shaken Not Stirred: Citi's China Shakeup

Well well well what do we have here? It seems Citi has decided to wield the golden gun in China eliminating a rather significant 3,500 technology positions. Word is they're tidying up their operations at the China Citi Solution Centers in Shanghai and Dalian. By the fourth quarter these positions will be as good as gone. It's all part of a larger scheme you see. A global diet if you will aiming to trim about 10% of their workforce. Seems rather drastic doesn't it? But as they say sometimes you have to break a few eggs to make an omelette... or in this case a leaner balance sheet.

From Shanghai with Cuts: Tech Takes a Hit

The chop shop appears to be primarily targeting the IT sector – software development testing the usual suspects. Some of these roles are being relocated elsewhere but details are as scarce as a sober spy at a casino. One can only imagine the morale over there is about as high as Blofeld's chances of winning a popularity contest. Citi's big boss Jane Fraser is apparently leading this sweeping reorganization aiming to boost profits and restore investor confidence. Good luck with that darling. Banking like love is a ruthless game.

Nobody Does It Better... Except Maybe the Competition

Citi is not alone in this game of financial Twister of course. Other global banks are feeling the pinch tightening their belts amidst a less than rosy economic outlook. Blame it on tariff wars or whatever fashionable scapegoat is trending this week. Meng Shen from Chanson & Co. suggests foreign banks might be scaling back in China due to slower growth and Beijing's increasing regulatory scrutiny. Personally I'd rather face a SPECTRE operative than a room full of regulators but each to their own.

Diamonds Are Forever... But Jobs Aren't

Meanwhile HSBC's subsidiary Hang Seng Bank is also restructuring resulting in about 1% of their 'core staff' facing the firing squad. A cost cutting initiative aiming for $1.8 billion in savings by 2026. A bit ambitious even for a bank with the resources of Fort Knox wouldn't you say? Let's hope they're not cutting corners on quality... or paying their IT staff to implement security features for that matter.

The World Is Not Enough... China Maybe

The big question seems to be: is China still the golden goose? Some multinational companies are reconsidering their reliance on the Chinese market citing tensions with Washington sluggish domestic demand and fierce competition from local players. An American Chamber of Commerce survey reveals a record number of U.S. companies considering relocating manufacturing or sourcing out of China. It would seem some businesses are having a hard time with China but I'd advise to proceed with caution. After all The World is Not Enough.

Die Another Day? Or Just Re Evaluate

Even the beauty industry is feeling the burn. L'Oréal is rumored to be laying off up to half of its travel retail workforce in China due to sluggish sales and Mercedes Benz is planning to cut up to 15% of its sales and finance staff which will affect about 2,000 people. Tough times indeed. But perhaps these companies can learn a thing or two from yours truly – sometimes you need to adapt to survive. The name's Bond James Bond. And I always have a plan... and a backup and a backup for the backup.