Barely 3 days after announcing a layoff exercise involving over 9,000 staff, Citigroup employees are now facing a fresh nightmare as the company revealed a plan to make redundant about 52,000 of its workforce worldwide.
The figure represents about one-fifth of the company’s overall employee size.
Through electronic briefings done earlier on Monday, the US’ number two bank announced its biggest single employment cut in the history of the company’s incorporation, as it continues its struggle to slash cost and return back to profitability.
The job cut is expected to complete within the first 3 months of the year 2009. Those working in the company’s two operation bases – New York and London, were said to be mostly hit by the new layoff move.
Apart from termination, job losses will also occur through asset disposal and a freeze in the recruitment and hiring, where resigned staff would not be replaced. At the moment, around 25,000 Citigroup staff are in the process of transferring to new owners as the bank is disposing off some risky assets. The fate of these 25,000 people are still unknown once the staff transfer process completes and may still subject for more job cuts.
The future of Citi’s CEO, Vikram Pandit, is also in doubt with much criticism being targeted to him for his failed turnaround plans for the bank. Eventually, he may find himself at the other end of the firing line.