Report: Citigroup may cut 15,000 jobs

[UpInArms]

Source: Reuters via USA Today

NEW YORK (Reuters) — Citigroup (C), the largest U.S. bank, may cut 15,000 jobs and take a charge of more than $1 billion to revitalize itself and boost a lagging share price, The Wall Street Journal said Monday.

The reported job cuts would affect about 5% of Citigroup's 327,000-person workforce, the newspaper said, citing persons familiar with the matter. Some jobs could go through attrition, the newspaper said.

Chief Executive Charles Prince is under pressure to cut costs, which last year rose twice as fast as revenue.

He is also trying to boost a share price that is up just 14% since he took over in October 2003, less than half the gains at Bank of America and JPMorgan Chase.

Read more: http://www.usatoday.com/money/industries/banking/2007-03-26-citi-cuts_N.htm

---

:wow: If the economy gets any better, none of us will be working!

[OhioChick]

1. More

US workers being bent over the barrel....

[Javaman]

2. Well see, that's the repukes ultimate goal...

to build a society where no one works...total utopia...

:sarcasm:

[OhioChick]

3. Wonder where those jobs will end up?

Deflation drives Citigroup to India - inefficiency of large corporations manifests in outsourcing from India, looking for profit outside US and hiring of illegal and H1B workers

Mar. 26, 2007

Citigroup now joins the bandwagon. It is the saga of the large corporation headed by most inefficient management. When they fail to generate profit in deflation driven economy, they slash jobs in US, outsource well paying jobs from India, look for profit outside US and hire illegals and H1B workers from abroad.

Under pressure from shareholders, Citigroup is planning to shed thousands of jobs and focus outside North America for growth'', according to a report on the website of New York Times.

The bank will get most of its growth in the future from the international arena, chief executive Charles O. Prince told thousands of employees in India today as he wraps up a tour of Asia.

It is unclear how many of Citis high-cost jobs could be moved to India where Citigroup already has about 22,000 employees. According to media reports, Prince said India has been the single biggest driver of growth for Citigroup’s international operations, the report said.

http://www.indiadaily.com/editorial/16207.asp

[UpInArms]

4. Citigroup Plans More Branches in India

http://www.washingtonpost.com/wp-dyn/content/article/2007/03/26/AR2007032600959.html

NEW DELHI -- Citigroup Inc. plans to open more branches and increase its work force in India, Charles Prince, the chairman and chief executive of the New York-based bank, said here Monday.

Prince predicted job growth in India despite media reports indicating that the bank might cut thousands of jobs in the United States.

CEO Charles Prince declined to comment on newspaper reports that Citigroup was planning to shed some 15,000 jobs, or about 5 percent of its 327,000-strong work force, to improve profitability. Citigroup announced the cost-cutting review plan last year after coming under heavy criticism from investors because its expenses were growing faster than revenue.

Asked about the report in the Wall Street Journal, Prince said: "I have read that. I have no comments."

Prince told reporters that his goal was to increase the share of international business in Citigroup's total revenue to 60 percent from its current 45 percent share.

...more...

well there they go! Off on the race to the bottom.

[ChromeFoundry]

5. They'll need more banks over there...

and less over here.

Don't need a bank when you don't have a job.