Emirates Airline's president emphasizes the need for a "strong engineering lead" as Boeing's CEO steps down, expressing skepticism about whether management changes will resolve the company's problems. Industry analysts stress the importance of a new CEO with a background in aerospace engineering and a commitment to quality production. Boeing's leadership shake-up, prompted by a series of incidents, aims to address quality control and restore stakeholder trust, but analysts caution that it may not be sufficient to overhaul the company's work culture and reputation.
Citigroup's plan to cut 20,000 jobs involves reducing managerial layers from 13 to eight, with 5,000 mainly managerial job cuts already underway. The remaining 15,000 cuts will be achieved through consolidating functions, eliminating stranded costs, exiting marginal businesses, right sizing the core expense base, and increasing automation and efficiency. Despite the cuts, the bank plans to continue investing in risk and controls, as well as transformation and technology, in order to grow revenues by 4-5% per year.
Citi's CFO, Mark Mason, explained that the bank's current reorganization involves eliminating various CFO roles and having the business units report directly to him, resulting in cost savings and increased efficiency. Mason believes that he can handle the responsibilities of the eliminated roles better than the previous CFOs and their support staff. The restructuring aims to delegate decision-making to lower levels, allowing top management to focus on units with issues. In other news, Ken Moelis sees opportunities in a revenue slump to recruit talent, BlackRock appoints a chief of staff, McKinsey's partnership class shrinks, HSBC makes redundancies in Hong Kong, Google introduces an AI client, TCI's Sir Chris Hohn receives a reduced dividend, and BNP Paribas opens an office in Miami.
Lewis Brisbois, which is facing an exodus of up to 140 lawyers, is dissolving its executive committee and creating an expanded management committee of 13 members. The firm's founding partner and co-chairman, Robert Lewis, is stepping down and will become chairman emeritus. Lewis Brisbois will elect a managing partner and other top managing or administrative partners as necessary. The firm is expected to rebuild its employment capabilities in California after the departure of lawyers to Barber Ranen, a boutique employment firm.
