Accessibility links

Major Bank Cuts 50,000 Jobs


The slowing global economy has forced Citigroup, the fourth-largest U.S. bank, to cut an additional 50,000 jobs worldwide.

The banking giant announced Monday it is cutting about 14 percent of its workforce to reduce expenses by about 20 percent. It has already slashed tens of thousands of jobs this year.

The news followed reports from Tokyo showing Japan has officially slipped into a recession.

Japan's economy - the world's second largest - shrank 0.1 percent in the three months ending in September.

Economic problems are also prompting International Monetary Fund head Dominique Strauss-Kahn to say the group needs an extra $100 billion in the next six months to aid struggling nations.

Major world economies are taking their own measures to prevent a financial meltdown.

In Washington, Treasury Secretary Henry Paulson and the Federal Reserve (Central Bank) Chairman Ben Bernanke will discuss the massive U.S. economic rescue plan with Democratic Congressional leaders on Monday.

U.S. lawmakers this week are debating whether to help the struggling American auto industry, a major player in the world's largest economy.

Analysts say the United States is on the verge of a recession, and 15 European Union nations are in one already.

In London, British Prime Minister Gordon Brown called for a coordinated approach to solve the global economic crisis.

Mr. Brown and other leaders from the Group of 20 industrialized and developing countries met in Washington Saturday to discuss what actions to take to stabilize the financial system.

Stock prices rose slightly on Monday in Tokyo but were down in other Asian, European, and U.S. trading.

Some information for this report was provided by Reuters.

XS
SM
MD
LG