Citibank will continue to be a net recruiter in India, despite plans to cut 11,000 jobs globally.
Strong financial performance of the India businesses and its focus on emerging market economies is likely to convince the global bosses not to reduce personnel here, senior executives of the bank said.
“There is no change to the business strategy for India. India remains an integral part of Citi’s global growth strategy. We have been investing and growing our franchise in India in a disciplined manner, consistent with our business model, brand position and overall strategy, and will continue to do so,” a spokesperson from the bank’s India office said in an e-mailed response.
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In 2011-12, Citibank’s profit after tax from the India operations expanded 35 per cent from a year before, driven by growth in assets across businesses. Total assets increased five per cent to Rs 128,428 crore at the end of March 2012.
“Citi India has recruited 1,900 professionals in 2012 till date and will continue to be a net recruiter of talent in India,” the spokesperson said. The bank employs about 7,700 people in this country. Yesterday, Citigroup revealed a plan to pare roughly four per cent of its global workforce, to cut costs. The move comes after chairman Michael O’Neill managed to oust former chief executive Vikram Pandit in October.
Senior executives confirmed the scope of job cuts in India was limited and any retrenchment would be restricted to a few employees.
They also noted there was a time lag before the impact of a global decision was felt on regional operations. In December 2011, Pandit announced layoffs for 4,500 employees or around two per cent of its then global workforce. In India, the layoff started a month later and around 100 employees were asked to resign in January 2012. They said it was difficult to estimate the number of jobs at risk in India at this point of time.
Since last year, a number of global banks and financial services firms have dismissed scores of employees in their India unit, as slowing growth in home markets and a worsening macro-economic environment forced them to cut costs.
