Citgroup and HSBC to cut off jobs

November 18th, 2008 - 9:57 am ICT by Amrit Rashmisrisethi  

Citigroup lay offThe CITIGROUP Inc plans to cut about 50,000 jobs due to the economy and the gobal credit conditions caused by the US banks. It is also expected that the cuts are on top of the approximately 23,000 jobs eliminated by the second-largest US bank between January and September. This would leave Citigroup with about 300,000 jobs worldwide, down 20 per cent from the end of 2007.

The layoffs are expected from the cuts,from the sale of units. The Citigroup now plans to slash expenses 20 per cent. Shares of Citigroup fell 18 cents to US$9.34 in premarket trading.

The New York-based bank have lost more than US$20 billion last year, according to the analysts, they say the bank might not be profitable before 2010.

On Friday, shares of Citigroup fell 68 per cent this year, making the bank with a market value of only US$51.9 billion.

HSBC is also likely to lay off 500 staff in Asia,but the 90 per cent of which will be in Hong Kong, facing the same economic conditions and its cautious outlook for 2009, spokesman Gareth Hewett.

This will make HSBC’s second round of layoffs in the region. At first, in September, HSBC said it was cutting 1,100 jobs in its investment banking operation, or 4 per cent of the unit’s total, including about 100 in Hong Kong, where the bank’s Asian unit is based.

The 450 Hong Kong jobs that will be cut represent 2 per cent of the bank’s workforce in the city.

HSBC employs around 330,000 people worldwide, including about 20,000 staff in Hong Kong. The bank also denied to confirm the information which stated that it had already cut off more than 100 jobs in Hong Kong.

The major targets of the primary cut off staffs are in Hong Kong and Singapore.

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