The Argus-Leader reports that:
"A handful of Citibank employees working for the Student Loan Corp. division in Sioux Falls were told Wednesday of mandatory reassignment. Forty-three employees will be reassigned to support the bank's credit card businesses, according to Mark Rodgers, vice president of public affairs at Citi and spokesman for the Student Loan Corp. "It is a reallocation of resources," Rodgers said. "They are not losing jobs."
Citibank's student loan subsidiary, Student Loan Corporation was not selected as one of four Direct Loan servicers and recently reported that their FFELP originations had fallen 10% in the seaonally important 3rd fiscal quarter (first quarter of the 2009-10 academic year).
These 43 employees would appear to represent about 5% of the loan origination and servicing employees that Citibank employees to service, based on figures from their 2008 10-K:
"...approximately 960 employees of Citibank (South Dakota), National Association primarily located in Sioux Falls and Kansas City, Missouri, who perform the majority of the loan originations and servicing work on the Company’s student loans under the provisions of an intercompany agreement."
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