New York – Citigroup said Monday it would cut up to 50,000 jobs worldwide as the US banking giant struggles with the global financial crisis and four consecutive quarters of heavy losses.
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The company said the new job reductions would shrink its global workforce to 300,000 employees.
Citigroup, whose shares have been battered amid the credit crisis, said it would reduce its expenses by 20 percent to approximately 50-52 billion dollars.
The bank said Friday it would make further job cuts to cope with the financial crisis, and announced chief executive Vikram Pandit and other key executives had bought up 1.3 million shares to show confidence in the banking giant.
Citigroup shares fell some 24 percent last week and have dropped 70 percent since the start of the year, with the bank hit by hefty writeoffs linked to the US real estate crisis.
On Friday, Citi shares rose 0.74 percent to 9.52 dollars.
Citigroup has already announced plans for 22,000 staff reductions and has eliminated at least 13,000 so far this year, according to company figures.
Last month, Citi reported a third-quarter loss of 2.8 billion dollars, its fourth straight quarter in the red.
The troubled bank is saddled with billions of dollars in losses tied to mortgage investments that lost value in the collapse of the US real estate market and the credit squeeze that erupted last year.
Wow they must be really afraid of Obama.
The stock market dropping after the elections has nothing to do with 250,000 people being laid off and consumer spending is down.
It’s all Obama’s fault, 250,000 people quite their jobs and are afraid to shop because of Obama
good the government deserves it look would they did to successful business like agriprocessors !
You are all missing the point. What does the goverment or Obama have to do with this story? There are regular people working in this company who are going to loose their jobs. Plenty heimisher jewish people wo are not ceos or millinaires because they work for a big company but middle class people who work for wages that hardly meet thier bills every month.
These are mostly New York jobs, this means in about six months (after getting off unemployment) we will be seeing an additional 53,000 people on the streets without jobs, they have families to support rent and mortgage to pay…..
Has anybody noticed we don’t hear the term recession anymore, we are facing the realty of a depression….
Attention commenter #4 Anonymous 11:47 : I can no longer refrain from sending this vital piece of information to you and all your semi-literate friends in VIN Bloggerland- Listen up PLEASE!!!– The word “LOOSE” is the opposite of tight. Loose is the way your pants feel after skipping the chulnt and the kigel. It rhymes with “moose” (a large animal with antlers). The word “LOSE” is the word for misplacing or not being able to find something. It more or less rhymes with “news”. I send this as a public service message. More literate yeshiva bochurim and kollel yungeleut will surely lead to a reduction in many of our society’s ills.
to no. 5 – plz keep posting it.
This is a public relations ploy to get bail-out money.
I read a article not to long ago that the GOVERMENT has created some thousands of jobs in this economy, I guess the only jobs around today is to work for the goverment, good pay, insurance, benefits, perks – a enterpeneur that wants to create jobs is just impossible.
I also read the next big industry is HEALTH CARE people are getting older need more health care professionals, but what the fine print? the GOVERMENT again, either Medicaid or Medicare which is were most of the money comes from to pay for those healthcare workers, quiet scary.