It is really a very bad sign. Citi Group, U.S. fourth biggest bank by market value plans to eliminate 14% jobs or 50k jobs. Citi group has now around 352,000 employees in its pay roll. It has already eliminated around 23k jobs in this year alone by selling various business units and job cuts. It plans to just eliminate some more so that it can become profitable.
Expenses kept mounting and for the last four quarters it is totaled at 62 billion dollars. Now with the following moves it is expected to become around 50 billion dollars. Even after such a news, the shares of Citi Bank is not in high spirits. Investors are not still confident about the Bank and are losing faith in it. It is still in the downside slide. The value of the Bank has lost around 69% in this year, which is very high for anyone to handle it. In the last week alone, the slump was around 19%.
It is well known fact that the financial institutions have lost big time after the sub prime crisis. CitiBank is no exception. The losses incurred is around 20 billion dollars. In this year alone, the job cuts is around 160,000 put together with all the banks and financial institutions. This is quite a high number. So many people are losing jobs and still the situation is not under control. People are still suffering from many woes. It is just because of some people’s greed and their wrong motives that has caused everyone around the world this big problem. I know that I dont have any authenticated information to say this but still I feel that it is just the greed that caused us this big a problem.