Tuesday, 18 November 2008

Citigroup layoffs to have a limited impact on India

New Delhi(PTI): Allaying fears of possible job cuts, global financial services giant Citigroup on Tuesday assured that about 52,000 layoffs over the world will have a ‘limited’ impact on India.

“The headcount reduction announced globally will have limited impact in India”, the company said in a statement.

The Citigroup has about 22,000 employees currently working in India. Of which, 12,000 work for Citigroup Global Services Ltd (CGSL).

Infact, the company in its statement has attributed the reason for a possible relief to a limited impact in India to the sale of Citigroup Global Services Ltd (formally e-serve) to Tata Consultancy Services, which is expected to be completed in the current quarter itself.

The Vikram Pandit-led Citigroup had created a flutter in the job market announcing to slash more than 52,000 jobs in the coming months and reduce expenses by 20% in 2009.

The company had stated that it would reduce the total head count to less than 3,00,000 in the near term as part of the plan. The financial services behemoth had a workforce of 3,52,000 in the third quarter of 2008.

The firm, severely battered by the financial crisis, had incurred huge losses in recent quarters. In the third quarter, Citi had a loss of $2.8 billion.
While, at the end of the fourth quarter of 2007, the company’s head count stood at 3,75,000, in the first three quarters of this year the company had chopped 23,000 jobs. PTI

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