Citibank lay-offs: fires employees

Another credit crunch, another bank suffering the aftermaths of subprime mortgage crisis and finally going for a headcount reduction.

As per the enws, the famous Citibank is planning a massive lay-off, much more than what was expected as compared to lat year.

traditionally, the citibank employees, bottom 5% of them used to be fired on the basis of performance. However, this year, the no. is expected to be much higher than last years. citibank is citing the reasons of cost cutting and expansion of business in other regions, which may appear to be more profitable.

Needless to say, the majority of layoff for citibank emplyees will be those who will be fires from the mortgage and loans disision of citibank banking.

Ot of the total 60,000 citibank employees - around 4,200 jobs will be cut. moreover, apart from these 4200, there can be many more rounds of layoffs, the second one expected to reduce around 2000 citibank employees.

Citigroup employs about 320,000 people around the world. Even before the credit crisis started last summer, the company announced that it was reducing its staff by 17,000.

Egg Card Withdrawal – Cardholders angry at Egg card’s decision

After the collapse of so many leading banks in the subprime mortgage crisis, followed by scams being unearthed at SocGen, following the closure of BNP Paribas Hedge Funds, following the Fed rate cut, following the selling of UK based mortgage lending banks like Northern Rock, It’s time now for the Credit card companies to show their skills.

UK based Egg Credit Card, which was bought over by the US based Citibank group in last May, has withdrawn their credit cards from the so-called “RISKIER” customers since immediate effect.. A total of 161,000+ Credit Cards issurd by Egg have been revoked by the issuing bank.
The move marks another example of how banks are revising their lending criteria amid the credit crunch. It was sometimes during the last week, when the FSA or the Financial Services Authority, the watchdog of UK financial systems had declared that UK banks face their toughest times since the 1990s, all owing to escalating consumer defaults.

The customers affected will not be able to use their Egg credit card once the notice period has ended, although they can continue to make minimum monthly repayments or pay up in full.

Interestingly, the Egg card is now owned by US based Citibank. Another interesting point about Citibank is that last week, it has suddenly closed down several of its ATM in prime locations in the financial capital of India, Mumbai. Already, Citibank is facing tough times owing to the global meltdown and problem with their lending business.

Who are these riskier customers of Egg card?

UK people have filled up complains on internet message boards about Egg being unjustified to them. They claim that even people who pay their bills on time, ultimately meaning “No income for the card company” have been sent notices to terminate the credit cards. It’s all happening in the markets across the globe and the banks are the ones who are being hit the hardest. Especially those in the lending and borrowing business. Already Northern Rock is being sold out, and no wonder why the credit card companies, who used to send agents after each individual to sell a “FREE CREDIT CARD” are now cancelling the credit cards of customers who are loyal to them and pay the bills on time. Keep watching, loads to happen – it’s a RANDOM market.

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