Deflation drives Citigroup to India - inefficiency of large corporations manifests in outsourcing from India, looking for profit outside US and hiring of illegal and H1B workers
Anil Rane
Mar. 26, 2007

Citigroup now joins the bandwagon. It is the saga of the large corporation headed by most inefficient management. When they fail to generate profit in deflation driven economy, they slash jobs in US, outsource well paying jobs from India, look for profit outside US and hire illegals and H1B workers from abroad.

Under pressure from shareholders, Citigroup is planning to shed thousands of jobs and focus outside North America for growth'', according to a report on the website of New York Times.

The bank will get most of its growth in the future from the international arena, chief executive Charles O. Prince told thousands of employees in India today as he wraps up a tour of Asia.

It is unclear how many of Citis high-cost jobs could be moved to India where Citigroup already has about 22,000 employees. According to media reports, Prince said India has been the single biggest driver of growth for Citigroup’s international operations, the report said.

Prince’s stop in India comes just weeks before Citigroup plans to announce a broad restructuring plan that could involve the elimination or relocation of thousands of high-cost jobs from areas including New York, London and Hong Kong, several executives briefed on the matter say. Citi’s corporate and investment bank could be hard hit, with as many as 4,000 jobs lost, they added.

Citigroup, which employs more than 3,25,000, is expected to save $1 billion in costs with the coming cuts. The Wall Street Journal reported today that 15,000 jobs could be affected. Citigroup declined to comment on any figures, and said a review was on-going.

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