Citigroup Inc said it is planning to open more branches
and increase its work force in India amidst reports that
the US banking giant is planning to cut over 26,000 jobs
worldwide as part of its efforts to improve profitability.
O. Prince III, chairman and CEO of the New York-based
bank, who is under pressure from investors to improve
profitability at the bank, is expected to either lay off
or reassign more than 26,000 jobs to streamline the bank''s
unwieldy global operations.
is expected to shed 10,000 to 12,000 jobs this year, according
to people close to the developments. Some 14,000 additional
positions will be lost to attrition or relocated from
high-cost locations - including London, Hong Kong and
New York, where the company is based - to less expensive
areas like India, Buffalo, Cincinnati and northern New
however, predicted job growth in India despite reports
indicating that the bank might cut thousands of jobs in
the United States. He declined to comment on newspaper
reports that Citigroup was planning to cut jobs to improve
said the goal was to increase the share of international
business in Citigroup''s total revenue to 60 per cent from
its current 45 per cent.
"I would expect our international business to grow
faster than some of our other businesses, but we don''t
target one business for another to grow more or less,"
indicated that some back-office work would move to India,
where Citigroup already operates large call center facilities
- a practice that most western companies have followed
in recent years to cut costs.
have tended to expand our back-office activities in India
as a benefit to the rest of the world," he said.
"I think you will see us continue to consolidate
and simplify our back-offices around the world. Traditionally,
India has been a beneficiary of that process."
also plans to open more branches and expand its operations
in India, especially in such areas as microfinance, Prince
"We have been increasing our headcount right along
in India," he said, adding, "That will continue."
India head Sanjay Nayar said the bank has not set any
target for headcount growth here and that it would be
linked to the expansion of the bank''s Indian business.
bank added nearly 4,000 staff in India over the past year,
raising its headcount to 22,000.
company''s clientele in India includes about 1,000 large
corporations, more than 22,000 small and medium enterprises,
and 5.5 million retail customers.
has 327,000 employees worldwide. Although its consumer
and credit card operations will bear the brunt of the
job cuts, it will also be extend to its other main businesses,
including its investment bank.
announced the cost-cutting plan last year under heavy
criticism from investors because its expenses were growing
faster than revenue.