"And though tyranny, because it needs no consent, may successfully rule over foreign peoples, it can stay in power only if it destroys first of all the national institutions of its own people."

Monday, November 26, 2007

More Layoffs on the Way at Citigroup

It appears Citigroup is preparing for another, much larger set of layoffs after the 17,000 cuts earlier this year. This comes after failed CEO Charles Prince resigned earlier this month, with a typically hefty exit package. The ball is in the Federal Reserve's court, with their move expected to come next month.

Citing people with knowledge of the matter, CNBC said the total number of employees affected could be as high as 45,000. Citigroup currently employs 275,000 staff, according to its website.

A Citigroup spokesman said the bank was assessing ways to cut costs.

"We are engaged in a planning process in anticipation of our new CEO and our business heads are planning ways in which we can be more efficient and cost effective to position our businesses in line with economic realities. Any reports on specific numbers are not factual," the Citigroup spokesman told AFP.

The banking giant is reeling from its exposure to the US housing slump and a related credit squeeze.

The banking behemoth is also searching for a new chief executive officer after former CEO Charles Prince stepped down on November 5 as Citigroup revealed it was facing likely investment writeoffs of between eight and 11 billion dollars.

Analysts at Goldman Sachs believe the company could be forced to absorb eventual writeoffs of up to 15 billion in the coming quarters as the housing and credit markets show no sign of improving anytime soon.

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