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Axe falls on Indian workers: Citigroup Inc to cut 4500 jobs
Top world banks are executing on massive job cuts around the world but this time the axe is falling on their Indian workforce as well. Citigroup Inc. will eliminate more than four thousand jobs in India in order to cut costs.

INDIAN WORKERS had heaved a sigh of relief after top world banks spared them as they announced massive layoffs globally due to economic slump down. But recent layoff reports are certainly worrying for the workforce in India as Citigroup Inc. announced to eliminate 4500 jobs in its latest efforts to cut costs.
In an investor conference on Tuesday, Citigroup's CEO, Vikram Pandit, disclosed the job cuts that represent about 1.5 percent of its global workforce of 267,000. He said that the cuts would be made over the next few quarters. “Citigroup will take a $500 million hit to revenue from an accounting-related charge related to the changing value of its debt,” Pandit warned.

Over the last few months, many banks have been drastically cutting their staff. Only last month, Swiss lender UBS told investors it is downsizing its investment bank to 16,000 people by 2016 from the current 18,000. It said that that the bank is doing it to try to reduce its exposure to risk. European banks including UBS, Barclays, HSBC Holdings, Royal Bank of Scotland and Credit Suisse have announced more than 70,000 job cuts since midyear, compared to 42,000 by US peers, according to Bloomberg.

Though such foreign banks have a significant presence in India but fortunately for the workforce here, layoffs are now a hard unavoidable reality. One of the reasons could be comparatively cheaper labour involved in their India operations but the recession in the economy could force them to announce cuts here as well. Another way to offset the effects of the credit crunch could be to slash the salaries of the employees.

The Asian economy has been growing despite the 2008 financial breakdown in the US and the global markets and that had saved it from the cuts but this time axe seems to be falling on these markets as well and India being one of the major economies, its workforce shall have to face the music as well.

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