Troubled banking giant Citigroup has sacked over 37 officials in India as the bank has announced 50,000 more job cuts globally. The 37 people who have been asked to leave from Citi India consist mostly of senior executives, reports Economic Times. people have been asked to let go
from retail, investment banking, treasury and global transaction business team. The job cuts in India are expected to be around 1,000 people, most of which will come from CitiFinancial India, the group’s non-banking finance company.
These job cuts have come at a time when Citi’s South Asia head Sanjay Nayar has decided to quit and is being replaced by Mark Robinson, who is coming from Citi’s Russia operations. Nayar is joining global private equity major Kohlberg Kravis & Roberts Co as CEO KKR India.
This week the share price of Citigroup has fallen by more than 50% and the banks troubles have worsened. Even the announcement by its biggest shareholder Prince Alwaleed that he will increase his shareholding to 5% has not helped the stock. The company’s executives have been in
talks with federal officials discussing options as selling whole or part of the company. Even replacement of Chief Executive Officer Vikram Pandit has been discussed. Citigroup is mulling a possible merger with Morgan Stanley, Goldman Sachs or State Street Bank. The US government may also step in for a possible rescue.
Citigroups’ fate will have an impact on couple of India’s software companies. Tata Consultancy Services, which last month agreed to acquire Citi’s subsidiary Citigroup Global Services (CGSL) for $505 million, also has a long-term contract of assured revenue of $2.5 billion from Citigroup. Citigroup also holds a 43% stake in Chennai-based financial software firm Polaris Software Labs.