Banks and brokerages around the world have cut more than 200,000 jobs since the collapse of the subprime mortgage market last year; today, Citigroup was the latest to announce it will eliminate jobs — 50,000 in fact.
With the U.S. unemployment rate soaring to 6.5 percent, October was the highest month on record since 1994 for job loss.
Citigroup’s employment cuts are the largest out of any financial institution as of late. Citigroup rivals JP Morgan Chase and Bank of America have managed to stay afloat; although the London Telegraph reports JP Morgan might be on the verge of job cuts as well.
UBS, Merrill and Wachovia Corp. are among companies that have disclosed more than 5,000 job reductions. Most major global stock indexes have dropped more than 25 percent this year, with the S&P 500 down 40 percent. The International Monetary Fund’s World Economic Outlook forecast last month that global growth will weaken to 3 percent in 2009, from 3.9 percent this year and 5 percent in 2007, according to Bloomberg News.