In the wake of Citigroup announcing that it is cutting at least 52,000 jobs, the company’s head of human resources is calling it quits.
John Donnelly, head of HR at Citigroup, is leaving to take on a similar role at JPMorgan Chase. Donnelly, who has been with Citi for 30 years, will start his new position early next year, said Darlene Taylor, a spokeswoman at JPMorgan. He replaces John Bradley, who has been with JPMorgan since 2002.
Paul McKinnon, Citi's new head of talent management who just started early this year, will replace Donnelly. Bradley will remain at JPMorgan in "another senior capacity," according to an internal memo.
Donnelly’s decision to go to JPMorgan isn’t surprising given Citigroup’s troubles, observers say. After announcing November 17 that it would be laying off an additional 52,000 employees worldwide, the company’s stock plummeted, dropping below $4 per share on Friday, November 21. On Monday, November 24, the federal government agreed to a $250 billion bailout of the New York-based financial services giant.
And Donnelly is probably one of a number of executives JPMorgan is looking to bring on in this environment, observers say.
“Business goes on,” said Marc Schweitzer, executive director at Maximum Management Corp., a New York-based HR recruiting firm. “This is an opportunistic market, and so JPMorgan is looking at talent no differently than it would look at possible acquisition targets.”
Bringing Donnelly on is a good move for JPMorgan, said Gustavo Dolfino, president of the Whiterock Group, a New York-based executive service firm that specializes in financial services.
“He isn’t just about blocking and tackling,” Dolfino said. “He has knowledge of the business.”
Donnelly’s departure is also indicative of the challenges Citigroup may face as it attempts to recover, Dolfino said.
“There is a lack of confidence in their ability to survive this, and many more will follow,” he said. “There are Citigroup CVs all over the Street.”
—Jessica Marquez
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