The announcement is just the latest in a string of other layoffs made by large banks. Credit Suisse announced job cuts in June. Bank of America (BAC) recently said it would cut 3,500 people. Its stock has suddenly dropped to a 52-week low of $6.31 compared to a 52-week high of $15.31 on concerns that its mortgage portfolio is deeply troubled. HSBC could cut as many as 30,000 people.
A logical question is which financial firms will add to the long lists of layoffs? If the stock market is any indication, Citigroup (C) is in nearly as much trouble as Bank of America. Its business units mirror those of BAC. It is one of the large financial shopping centers with trading floors, credit card businesses, consumer banks, and investment bank operations. It is also under pressure because of mortgage backed securities it sold to some clients. And let's not forget its lackluster earnings in the last quarter and the the fact that Citigroup's shares are off 45% in the last six months.
The wave of layoffs coming to the financial services industry has been predicted many times in the recent past. What has become more clear recently is that not all banks are created equal. That will force some to restructure -- and soon.
Gallery: Companies Facing Layoffs