Citibank Lay off Job Cut: fires 52000 employee & creates history

It was in March when there were reports that CitiBank fired Employees. The financial turmoil is taking a big toll on all the sectors of the world, especially the financial sector and no geographical location is shielded from it. The latest one to add to the list of lay off or Job Cuts is the Citi Bank , which is reported to have laid off around 53000 employees as a measure of cost cutting.

CitiGroup has set the world record of making the second largest job cut in the world - firing around 52000 or 53000 employees across the globe
The previous record was of IBM, which annouced 60,000 people to be laid off in 1993.

WHat imp[act will the Citi Bank Lay off Job Cut have on economy?
It is expected to have a lasting impact not only in the financial sector, but also in the other sectors as this will directly affect them. Finance, IT, construction , real estate, which all require funding, will get affected.
Especially, the US economy, primarily the New York market, will see a lot of turmoil and problems.

Why are these big layoffs being made by Citi Bank Lay off Job Cut
The main reason is that there is nothing in sight for a short term revival in the economy. With Europe and Japan already declaring recession, the perception has gone worse. So these Citi Bank Lay off Job Cut are being made so that the expenses are cut and then there can be enough space for future hiring,, as and when it is required, if signs of economic revival are seen.

How much savings can be made due to the Citi Bank Lay off Job Cut
The operating costs of Citibank is expected to come down to around 50 billion USD per year, after the Citi Bank Lay off Job Cut.

What has happened with the CitiBank stock price after the Citi Bank Lay off Job Cut
The stock price took a nose dive and went down 7% on Monday. The stock is down 70% this year and trades at levels unseen since 1996 due to billions in mortgage-related losses over the past 12 months.

Let's hope that alternative jobs are available to the affected employees of Citi Bank Lay off Job Cut.