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Be Tough & Be Mercy

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Be Tough & Be Mercy
I believe in the current market environment, staff reduction is not a problem only faced by Citi, it is really a universal headache in the banking industry. However, in my view, it could also be an opportunity to improve efficiency and public images. The effects depend on how we deal with this problem from both inside and outside aspects.
► The key issues to deal with this problem from inside include: 1. How to set up a criterion to determine which person should be laid off and which department can be eliminated? 2. What can Citi do for the future career of those fired employees? 3. How to inform those employees?
● For the first question, I think an thorough duty diligence is necessary first. Then, spot people who have flaws in following aspects: A. Had ethic problems in the past B. Could not finish assignments regularly C. Cannot get along with workmates D. Have bad habits such as gambling or shirks E. Have bad credit records F. Have intentions to work in other firms
People who have problems above would harm the whole company somehow, so it’s a good time to clean them out. When making decisions, age is a factor that should be taken into consideration as well. Firing senior guys may cost a lot in the compensation and result in lack of skilled staff in certain positions. Firing young guys may lead to wastes of previous training budget and short of backup talents. I recommend to lay off people who have been working here around 4 year but never or seldom been promoted. These people may already want to leave anyway.
When it comes to which department or business could be eliminated, I believe following points are important: A. Businesses overlapping between different departments can be shrunk B. Departments whose works don’t cost too much time can be merged into others C. Operations which

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