Citigroup to announce job cuts of up to 50,000: CNBC

by Amitjha | November 17, 2008 at 04:39 am

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Job market is engulfed in fire, and latest victim is city group employees.According to city group CEO Mr. Pandit, company is going to say goodbye to 50000 employee worldwide.

Citigroup Inc CEO Pandit will announce job cuts of up to 50,000, according to a report on Monday by CNBC. Highlights:

* Job cuts to come from layoffs and attrition

* Implements significant expense reductions

* Workforce to shrink to 300,000 from 350,000

* To cut risky assets significantly, strengthen capital position

* Job cuts to be wrapped up in the first two months of 2009

That is quiet the number for one single Institution to lay off. I had to read it twice just to make sure I did not miss read it.

ya you are right , i faced the same problem, i cross chequed twice.Unfortunae but real.The City will turn into a tyarnopolis then.

The total number is 75,000 - 23,000 layoffs that were previously announced plus an additional 52,000 job cuts announced today. That amounts to 20% of the workforce!

US bank Citigroup has announced plans for about 52,000 new job cuts, on top of 23,000 cuts already made this year.

Citigroup said the 75,000 job cuts represented a reduction of about 20% of its staff, leaving it with 300,000 jobs worldwide "in the near term".

The cuts will come from redundancies, the sale of units and natural wastage, the bank said.

Citigroup has lost more than $20bn (£13.6bn) in the past year because of the global financial crisis.

Citigroup stock prices tumbled in reaction to the news, which was first posted on the company website by CEO Vikram Pandit. Townhall style discussions about the scaleback plan are scheduled for later today. Along with job cuts, Citigroup plans to cut back on expenditures by 20%. All layoffs and expense cut backs should be complete within the first 2 months of 2009.

The plans, posted on the company's Web site, are being discussed by CEO Vikram Pandit at the company's town hall meeting in New York Monday with employees.

The company said total headcount is being reduced by 20 percent from its peak of 375,000 at the end of 2007; the company had already announced in October that it was eliminating about 22,000 jobs from those levels. The total workforce reductions include thousands of jobs that will be lost when Citigroup completes the sale of Citi Global Services and its German retail banking business.

The New York-based bank has posted four straight quarterly losses, including a loss of $2.8 billion during the third quarter. The company said that in addition to job cuts, it plans to lower expenses by about 20 percent, and that is has reduced its assets by more than 20 percent since the first quarter of the year.

Citi shares fell 42 cents, or 4.4 percent, to $9.10 in morning trading. The company's shares have been trading at 13-year lows.

Thanks Tina Kells,for updating the story. the situation is much worse then projection,the system is totally intransparent, the business plan of cost cutting by firing employees is troublesome.well hope the will learn the simple lesson of human resource utilisation in coming days.

Job cuts to come from layoffs and attrition . . .

In three months! Attrition will be zero.

First Flagged at 5:16 AM, Nov 17, 2008 by Paschen

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Citigroup to announce job cuts of up to 50,000: CNBC

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