Citigroup could lay off thousands in continued industry turmoil

Wednesday, November 16th, 2011 By

Citigroup bldg

There could soon be fewer people going to work at New York's Citigroup Building. Image: edenpictures/Flickr/CC BY

Banking giant Citigroup is poised to drop the ax on about 1 percent of its global work force. That is an estimated 3,000 jobs. While Citigroup is the largest, it is not the only bank planning job cuts as a cost-reducing measure. Layoffs are being experienced in the finance industry in the U.S. and abroad.

More Citigroup layoffs

New York-based Citigroup has announced another large round of layoffs. Although an exact number has not yet been determined, more than 3,000 employees could be turned away. According to the New York Times, about a third of the cuts will come from the bank’s securities and banking unit. The layoffs could be spaced out through the coming year.

Although the New York Times piece said its contact was not authorized to speak officially for the bank, it is believed that some of the employees to face layoffs have already been notified.

Citigroup has in recent months cited turbulence in the stock market and increased federal regulations as sources of lost income.

Other U.S. bank layoffs

Goldman Sachs also has disclosed plans to chop about 1,000 jobs as part of its attempt to cut nearly $1.5 billion from its expenses.

Bank of America, the nation’s largest bank, has already eliminated around 3,500 jobs this year and is considering 30,000 more. Bank of America was hit the hardest by the mortgage crisis. In 2008 the banking giant acquired the mortgage firm Countrywide, which was at the epicenter of the crisis.

Bank layoffs internationally

Swiss banking giant UBS earlier this year announced plans to cut 3,500 employees. The Swiss banking industry has suffered losses following an international push for the industry to behave in a more transparent manner with regard to its offshore customers.

In France, BNP Paribas Bank announced Wednesday that it will be eliminating almost 400 employees, with more layoffs to come.

Nomura Bank in Japan also announced a new round of layoffs Wednesday. The bank has said it wants to eliminate $1.2 billion from its expenses.

Financial crisis continues

The preponderance of layoffs and cutbacks in the financial sector internationally reaffirms that the economic downturn is by no means over or limited to the U.S.

Sources

Seattle PI
New York Times
MSNBC

 

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