Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/5/2012 (2 years ago)

Catholic Online (www.catholic.org)

New regulations are costing jobs around the world.

Citibank is shedding 11,000 jobs as well as scaling back operations in new markets in an effort to save $1 billion through the next year. The move to drive down costs comes as Obama's tax increases couple with the fiscal cliff and European debt crisis to create uncertainty across the industry.

Citibank is cutting jobs and costs in the face of new regulations and fiscal uncertainty.

Citibank is cutting jobs and costs in the face of new regulations and fiscal uncertainty.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

12/5/2012 (2 years ago)

Published in Business & Economics

Keywords: Obama, Citi, Citibank, cuts, regulations, fiscal cliff, European debt


NEW YORK, NY (Catholic Online) - Citigroup is one of the world's largest firms with nearly two trillion dollars in assets worldwide. For many Americans, Citi provides banking and checking services as well as credit and investments.

The new CEO of the company, Michael Corbat, 52, took over in October and has set out to reduce operating expenses. In January, his plan will cut 11,000 jobs and reduce some global operations. Many of the streamlined jobs will be in other countries besides the U.S.

The move is expected to save Citi nearly $1 billion in 2013. The announcement has already caused Citi's share price to move upwards by 4 percent.

The anticipated percentage reduction of the workforce is about 4.2 percent.

The reasons for the cut include a number of changes in the fiscal landscape. As President Obama's new tax increases and a variety of fiscal regulations impact the industry, the banking giant must make tough choices to comply while upholding its fiduciary responsibilities.

Also a factor is the fiscal cliff and European debt crisis. Both events could have a major, adverse impact on the banking industry as a whole should either one come to a head.

The bankers themselves are also seeing some cuts. Bonuses for some divisions are being cut by as much as 10 percent, particularly in the securities unit of the company.

New capital rules are to blame, which are compelling banks across the nation to slash both staff and pay to continue generating any profit at all.

Some staff can be replaced with computers and upgraded technology, while others will simply have to work harder to finish their tasks. This is common in any industry where staff is reduced.

The ultimate hope is to protect Citigroups investments around the world, and to allow the company to remain competitive in the global market. Of course, if governments, particularly in the U.S. continue to change the rules of banking, then further changes may have to be made in the years to come.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2015
Universal:
Scientists: That those involved in scientific research may serve the well-being of the whole human person.
Evangelization: Contribution of women: That the unique contribution of women to the life of the Church may be recognized always.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Business & Economics

Federal taxes unbelievably through the roof for February Watch

Image of Uncle Sam took in a lot of cabbage for the first few months of 2015. Why is the U.S. still trailing a momentous deficit, then?

By Catholic Online (NEWS CONSORTIUM)

Uncle Sam took in a lot of cabbage for the first few months of 2015. Inflation-adjusted federal tax revenues hit a record $1,185,613,000,000 in the first five months of fiscal 2015. Why is it that the U.S. federal government still ran a $386,537,000,000 deficit ... continue reading


Top 10 most financially important cities in the world Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

New York City is still the most important center in the financial world, according to the latest ranking made by the Long Finance in The Global Financial Index 17. In the latest rankings, it was observed that more cities in Asia are becoming important within the world ... continue reading


Apple topples AT&T from Dow Jones in reflection of iPhone's dominant position Watch

Image of The move by S&P Dow Jones Indices had been widely anticipated since a seven-for-one stock split in June 2014.

By Catholic Online (NEWS CONSORTIUM)

Largest company in the world, Apple will join the Dow Jones Industrial Average to replace AT&T. The change reflects the dominant position of the iPhone maker in the U.S. consumer economy today. The figures tell the tale: Apple has a market capitalization of ... continue reading


'Underage Red': Sephora shocks consumers with inappropriately named lipstick shades Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

With lipstick shades called "Underage Red" and "Lolita," the cosmetic retailer brand Sephora is under fire once again. Using names that refer to young girls being described in a sexualized manner, the lipstick shades grabbed the attention of shoppers, eventually ... continue reading


Oprah Winfrey sadly shuts down Harpo Studios forever Watch

Image of 61-year-old, Oprah Winfrey continues to play an active role in Hollywood, despite the ending of her talk show and now Harpo Studios.

By Abigail James (NEWS CONSORTIUM)

Oprah Winfrey is set to shut down production at her Chicago-based Harpo Studios by the end of 2015. After much thought, the billionaire mogul has decided production for her personal network OWN will be better done in Hollywood. LOS ANGELES, CA (Catholic Online) - The ... continue reading


SHINY, RED APPLE: Computer giant is now twice as big as world's second largest firm, ExxonMobil Watch

Image of Strong sales of the larger-screened iPhones resulted in the largest quarterly profit reported by a company, with device sales rising 29.5 percent in the final three months of 2014 to $74.6 billion,

By Catholic Online (NEWS CONSORTIUM)

How big is Apple? The creator of the iPhone and tablets is SO BIG that it is now currently twice as big as its second-closest rival, ExxonMobil. This is being reflected in the stock market, where shares in Apple jumped 2.7 percent at the start of the week to ... continue reading


WHERE IS YOUR MONEY GOING? Government collects $1 trillion from taxpayers - and there's still a deficit! Watch

Image of Where is all of our hard-earned money going?

By Catholic Online (NEWS CONSORTIUM)

Where is all of our hard-earned money going? Real federal tax revenues for the first time ever topped $1 trillion in the first four months of the fiscal year, October through January, according to data released Wednesday by the U.S. Treasury. LOS ANGELES, CA ... continue reading


80 MILLION Americans have their privacy invaded in Anthem data breach Watch

Image of An internal investigation, days later verified that the company was a victim of a cyber-attack, the company said, and federal authorities were alerted.

By Catholic Online (NEWS CONSORTIUM)

Insurance giant Anthem suffered a massive security breach when hackers broached computer safeguards and mad a wild data grab. Up to 80 million Americans have had their privacy effectively invaded, although authorities say more sensitive information was not ... continue reading


Electronic giant RadioShack files for bankruptcy - but will keep some stores open Watch

Image of The Chapter 11 filing, made in federal bankruptcy court in Delaware, surprised few. RadioShack had not turned a profit since 2011.

By Catholic Online (NEWS CONSORTIUM)

RadioShack, an iconic, 94-year-old electronics chain has filed for bankruptcy protection. The company has decided to sell up to 2,400 of its stores to the wireless service provider Sprint and a hedge fund that is its biggest shareholder. LOS ANGELES, CA ... continue reading


Is your bank account suffering? Here are 5 INCREDIBLY EASY TIPS on how to save money! Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Saving money is not a simple task. It is hard to resist eating out or buying the hottest new music. How can your savings account grow when spending money is so easy in today's world? LOS ANGELES, CA (Catholic Online) - Whether you're planning on moving or looking to ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 50:4-7
4 Lord Yahweh has given me a disciple's tongue, for ... Read More

Psalm, Psalms 22:8-9, 17-18, 19-20, 23-24
8 'He trusted himself to Yahweh, let Yahweh set him ... Read More

Gospel, Mark 15:1-39
1 First thing in the morning, the chief priests, ... Read More

Reading 2, Philippians 2:6-11
6 Who, being in the form of God, did not count ... Read More

Saint of the Day

Saint of the Day for March 29th, 2015 Image

St. Berthold
March 29: Considered by some historians to be the founder of the Carmelite ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter