World's largest financial services firm Citigroup Inc said it will eliminate 17,000 jobs or nearly five per cent of its global workforce, even as it plans to move 9,500 positions to India and other low-cost locations.
With an aim to cutting its annual expenses by 4.6 billion dollars in the next three years, the US-based banking giant said that its restructuring plans also include shutting down some offices and relocating employees.
While announcing these large-scale job cuts, Citigroup said that its total headcount would continue to grow in 2007, but the rate of growth, excluding acquisitions, new branches and other investments, would slow significantly.
The company could move a large chunk of its jobs—which could be in the range of 5,00-8,000--to India, especially for equity research, investment banking and back-office transaction-related activities, sources close to the development said.
The total number of jobs to be eliminated equal more than half of the total number of positions Citigroup added to its workforce in 2006.
More than 9,500 jobs will be moved to lower-cost locations, both domestically and internationally, the company said.
"Ultimately these changes will streamline Citi and make us leaner, more efficient, and better able to take advantage of high revenue opportunities," Citigroup Chairman and CEO Charles Prince said in a statement.
Industry observers said that the job cuts were more aimed at achieving an optimal level of performance, rather than plain cost savings as the company was also aggressively going ahead with acquisition plans.
Courtesy : Expressindia.com
With an aim to cutting its annual expenses by 4.6 billion dollars in the next three years, the US-based banking giant said that its restructuring plans also include shutting down some offices and relocating employees.
While announcing these large-scale job cuts, Citigroup said that its total headcount would continue to grow in 2007, but the rate of growth, excluding acquisitions, new branches and other investments, would slow significantly.
The company could move a large chunk of its jobs—which could be in the range of 5,00-8,000--to India, especially for equity research, investment banking and back-office transaction-related activities, sources close to the development said.
The total number of jobs to be eliminated equal more than half of the total number of positions Citigroup added to its workforce in 2006.
More than 9,500 jobs will be moved to lower-cost locations, both domestically and internationally, the company said.
"Ultimately these changes will streamline Citi and make us leaner, more efficient, and better able to take advantage of high revenue opportunities," Citigroup Chairman and CEO Charles Prince said in a statement.
Industry observers said that the job cuts were more aimed at achieving an optimal level of performance, rather than plain cost savings as the company was also aggressively going ahead with acquisition plans.
Courtesy : Expressindia.com