Citigroup, one of the largest financial services companies in the world, is bracing for another round of staff layoff as the company is struggling to get back to their feet from financial downturn.
The company last week was reported to have made the move in notifying more than 9,000 unfortunate employees who will be laid off as their jobs are being made redundant.
The staff were said to come from a number of different fields including investment banking, sales and trading, and prime brokerage.
This year, up to this month, more than 20,000 people working in various divisions of Citigroup have lost their job. The 9,000 odd numbers represent a cut of 2.6 percent of the overall size of Citigroup’s manpower.
Apart from laying off people, rumour has it that the company is ready to renegotiate its agreement with the customers and should this happen, the likelihood is high that customers will see an increase in interest in their new terms of lending and loans.
The New York based Citigroup is comprised of more than 10 major divisions, but the most prominent one is arguably its retail banking operating under the Citibank name. For many years, Citibank was ranked as the largest and most profitable bank in the world until it was hit with the subprime mortgage crisis recently.
Earlier in 2008, Citibank was replaced by ICBC Bank from China as the new world’s largest bank. Citibank slumped from first to seventh. It also lost its place as America’s largest bank and was disposed off by rival Bank of America.