Citigroup, Goldman, Credit Suisse to Reduce Global Work Force
As a cost-cutting measure, New York-based Citigroup Inc. recently revealed plans to lay off 3,000 or more employees from their global workforce.
After the news was first revealed, Citi's shares fell to $27.46 in the New York Stock Exchange.
Since Vikram Pandit took the helm as CEO of Citi, the company has slashed its workforce by as much as 30 percent and sold billions in private equity.
"Citi continues to navigate a challenging economic environment and delivered another quarter of solid operating results," said Pandit.
In July, Citi reported a 24 percent increase in profit in the second quarter. "We are in investment mode," John C. Gerspach, Citigroup's chief financial officer, said at the time. This was followed by results for the third quarter that revealed a profit of nearly $4 billion.
Despite these profits, over the course of the following year, around 900 of the 3,000 employees to be laid off would come from Citi's securities and banking division. It seems that Citi's massive lay-off has been triggered by the turmoil surrounding the financial markets, according to reports.
No details have been released over which countries would be affected by the planned layoff.
Citi is not the only financial company that plans to reduce its workforce, according to The New York Times.
Goldman Sachs has already planned to remove around 3,000 jobs. Bank of America will also reduce its work force and has begun laying off employees this year.
Other foreign banks including BNP Paribas, Credit Suisse and UBS have signalled to lay off some of their workforce to cope with the financial crises worldwide.