Global Layoffs: Not Just About IT Anymore

In advance of a formal press release due in mid-April, Citigroup yesterday announced plans to lay off approximately 15,000 high-cost workers in cities where doing business carries a high price tag — New York, London and Hong Kong.

The downsizing comes as Citigroup chief executive Charles Prince traveled to India to announce the expansion of Citigroup’s India operation into areas such as research, investment banking and credit analysis, as reported in the New York Times.

Citigroup has long outsourced its call centers and global processing to India, where it currently employs 22,000 workers. As for the trend of offshoring of white-collar jobs, it’s long been predicted by various sources, including the consulting firm A.T. Kearney. While this story may not be new “news,” it prompts numerous questions for discussion.

Will Citigroup’s action be sufficient to appease disgruntled shareholders like Saudi Prince Alwaleed bin Talal? (Talal is Citigroup’s largest individual shareholder.) Is it the tip of the downsizing iceberg for financial service firms? How much higher up the management chain will such layoffs extend? Some sources predict that no one, not even upper management, will be safe.

The Citigroup announcement is part of a long-term trend. Millions of laid-off American workers in the IT industry and other sectors have seen their jobs washed away due to offshoring.

Can white-collar jobs be successfully offshored? Is offshoring a threat to your white-collar job? What do you think will be the next white-collar industry to move overseas? Post your comments below.