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With its losses mounting, Wall Street is cutting jobs faster - and deeper - even pessimists had long feared.
In one of the largest single rounds of layoffs on record, not just for the financial industry, but for any industry, Citigroup said Monday it planned to eliminate a staggering 52,000 jobs, or 14 percent of the force work globally.
While Citigroup has announced its intention to remove about half of those jobs already, news of further cutbacks - pure and total size - highlighted flagging fortunes of the entire financial industry. Not since the early 1990s are an American company announced a reduction in such a rush.
But I think in some pain will end there for Citigroup rivals or industry. After years of breakneck growth in the financial industry, and its profits to pay more or less assumed roles in the economic life of the nation, Wall Street is the prize sharpest contraction in modern times. Industry to pay up more than 120,000 workers in early 2007, and many predict at least 240,000 more will go this year and next.
Citigroup has suffered the loss of a year, and stocks lower price spiraled to Monday. It is hardly alone in his pain. Given the losses in the gaping many financial companies, and hundreds of billions of dollars that the government is spending to shore, directors are under increasing pressure to reduce their annual pay and forgo bonuses. This is particularly jobs that are now disappearing with banks that generate profits in good times.

After Citigroup announced its accelerated plan for layoffs on Monday morning, Andrew M. Cuomo, the attorney general of New York, asked the company to refrain from paying bonuses senior executives this year, a step that Goldman Sachs said that Sunday, would be needed.

“It sends exactly the wrong message to the top brass of Citigroup to collect bonuses while investors, taxpayers and now Citigroup employees own suffering,” Mr. Cuomo said in a statement.

Across Wall Street, is the outlook for rank-and-file workers, which is very cruel. In early September, Moody’s Economy.com 45,000 to 65,000 workers predicted that the financial area in New York would lose their jobs by mid-2010. Now, Moody’s put that figure at 70,000 - and that assumes some workers find new jobs in a rapid decrease in the market.

The New York economy will feel the pain on Wall Street, financial, the industry is one of the main sources of the city and state tax revenues.

In New York, officials are bracing for thousands of additional layoffs. Last month, the New York comptroller its estimate has increased on Wall Street loss of jobs over the next two years from 35,000 to 25,000. That is approximately one third of the 165,000 jobs in private sector net loss for the city expects the pain of financial firms on leaks from enterprises, to nurture the financial sector.

Ed Witherell, which advises Wall Street banks for outplacement firm Right Management, likens the industry downturn that hit Wall Street after the 1987 market crash. The difference, he said, it was two decades ago, the stock market plunged rapidly. “This is just a whole series of crash after crash after crash,” he said.

The financial industry is just waking up to the severity of market crisis, said Charles Peabody, a financial services analyst at Portales Partners.

“At first, was convinced that the problem was fixed income,” said Mr. Peabody. “Now, the problem has spread to all other areas.”

At Citigroup, announced that directors had more than 27,000 job cuts, including those in store for the sale of Indian outsourcing company with banking and German before the franchise and layoffs. But the bank intensified its efforts on Monday, with plans to eliminate 17,000 workers in the coming months. It will also cut an additional 7000 employees or by divesting that business in the future and could spew more jobs through attrition.

The reduction of jobs would be in addition to about 23,000 layoffs already this year and to leave the bank, with approximately 300,000 employees, down from its peak of about 375,000 in the fourth quarter of 2008. Citi executives and there could be said that the layoffs before they moved ahead with plans to restructure the company next year.

Citigroup is the elimination of jobs worldwide, the highly paid corporate and investment bankers to junior managers in the credit card, banking and brokerage consumer lines. But officials back-office, the bank’s legal and human resources divisions, is expected to be particularly hard hit. Most of Citi employees will be told their fate at the end of the year.

Once the most valuable financial company in America, Citigroup was withering with its share price. It is four o’clock in succession, reported quarterly losses, including $ 2.8 billion in the third quarter, and is headed for another ugly quarter, credit card and mortgage losses wave. After falling sharply after the announcement, Citigroup shares recovered some on Monday, closing 6.6 percent, to $ 8.89.

Now, as Vikram S. schoolteacher nears the end of his first year as CEO, he is redoubling efforts to strengthen the belt. In a meeting with employees, he said Citigroup would trim spending by as much as 19 percent, to about 50 billion $ in 2009. He also said, the bank has been trying to shore and capital base and cut risky positions.

Citigroup executives said that Mr teacher viewed the layoff announcement as a bold step to show that it was Getting the company in control costs - and fast. Mr teacher grew frustrated by the slow pace of budget cuts and felt that the company would benefit from shock therapy.

Mr teacher, however, has not decided whether to take pain turning down an annual bonus. “How many of the board of directors will make decisions about the structure and level of compensation after the end of the year, the bank said in a statement.