Citigroups Survival in Doubt
Citigroups Survival in Doubt as 50,000 Jobs Cut
In yet another round of massive financial layoffs, Citigroup plans to cut about 50,000 jobs .
Citigroup's layoffs are the latest in a
brutal round of job cuts across the financial industry. The cuts have
been sparked by unprecedented losses due to bad credit investments, as
well as the subsequent precipitous drop in banking and other
financial-services business amid the worst economic conditions in 70
Combined with earlier cuts of more than 20,000
positions, the latest job cuts will equal a 20 percent reduction in the
bank's workforce from peak levels reached in the fourth quarter of
In October, fellow blue chip American Express Co.
(AXP) announced major layoffs, unveiling plans to slash 7,000 jobs. So
far this year, Goldman has said it would cut 3,200 jobs, Whirlpool
dropped the ax on 5,000, Yahoo cut 1,000 positions, and Hewlett-Packard
shed 24,000 jobs.
Town Hall Meeting
Citigroup gave a Town Hall Meeting Presentation
in which it compared its capital position to other companies, mapped
out loan loss reserves, expense reductions, and other items. Let's take
The chart shows the market has increasing doubts about Citigroup's
survival, or if it does survive, that it survives in one piece. And the
icing on the economic cake is the loss of another 50,000 jobs even if
it does survive.