Downsizing: a sedetive to kill the Financial pain.

In response to the present global financial crisis and the crisis faced by the US economy in over 80 years, CITI Group, a New york based financial giant has decided to cut 52000 jobs and it has been clearly and formally announced by the authorities on Monday.The main reason behind this drive is to recover the net loss of $20 billion, which the bank has incurred over the past few years. Another logic given by Mr Vikram Pandit,CEO,CITI Group is that the group is planning to implement a new restructuring policy followed by the job cut. It has also been seen by the authorities that the present job cut of around 52000 employees will reduce the cost upto 20%. According to sources, as of end of 2007 the CITI group had 375000 employees and as of september 30, it has 352000 employees. So the latest job cut will bring the total headcount to 300000. Earlier in April CITI Group decided to cut 17,000 jobs, shift 9,500 jobs to low cost locations, under pressure from the investors. The recent descision will affect the Europeon employees the most as CITI Group has its Europe headquarter in London with a total workforce of more than 10000 employees.The CITI Group Executives are under tremendous pressure from the investors to improve performance. The executives are of the opinion that this move will not really save the cost but will slow down the growth process. But it will still unknown that whether CITI Group will cut the jobs of top executives. Thus we can say that Win Bischoff, Chairman, CITI Group , will be spared. The worldwide situation is also same where countries like UK ,France,Japan, Hongkong,India are also facing the same problem as recession is crippling all of them. In a totality all the major Banking giants worldwide has already downsized jobs by 100000. Financial Organizations like Goldman Sachs has also started its downsizing programme by cutting 3200 jobs followed by Morgan Stanley who will cut jobs by 10%,Royal Bank of Scotland deciding to slash 3000 jobs. In Hong Kong ,HSBC has also slashed 450 jobs.The present Financial pain has engulfed the global market & corporates in such a way that the only option available to them is "Downsizing". No financial theories are working well on the situations,even experts have lost the direction to predict the positives.The only option available to deal with this situation is to just wait & watch with patience as only the upward movement of the global financial curve can improve the situation.