Citi and Sun to Layoff 16,000 People

November 14th, 2008

Via: Blogging Stocks:

The two companies announcing big layoffs: a big bank and a leading tech company that sells to banks. According to reports, Citigroup may lay off 10,000 employees — adding to the 23,000 it has already cut in the last year. Sun Microsystems announced it will can 6,000 people — 18% of its work force — citing the need to “align its cost model with the global economic climate.”

Is this the bottom? I seriously doubt it. The unemployment rate could get up to 8.5%, and maybe as high as its post-Depression high of 10.7%, up from its current 6.5%. At least that’s what Nobel Prize winning economist and New York Times op-editorialist Paul Krugman expects. Needless to say, in an economy which depends on consumers for 70% of its growth, this is not good news since it divides the country into two categories — those who lose their jobs and those who fear losing them.

And both groups are likely to spend less.

Posted in Economy | Top Of Page

3 Responses to “Citi and Sun to Layoff 16,000 People”

  1. John Doh says:
    November 15, 2008 at 12:13 pm

    Some people out there don’t like that
    Krug man guy.
    I concur with them after reading this.
    http://mises.org/story/3194

    Citi is big in my town here exploiting
    lax usury,and business tax laws/loopholes.
    SD is the Midwest version of DE (why are all East Coast corporations incorporated in DE?)now you know.

  2. tm says:
    November 15, 2008 at 10:26 pm

    I was in your fair state recently, and I did notice an awful lot of credit card companies’ call centers in the Sioux Falls area. I suppose they need some other industry around there to provide some diversification of the local economy, which seems to revolve mainly around casinos and adult video & sex toy emporiums as far as I could tell.

  3. John Doh says:
    November 16, 2008 at 12:42 am

    Only saw one of the sex places way out of town,..but ‘im new here 😆
    Yeah lots of something called Video Lottery
    here.I went into what I thought was a bar the beer was free,I don’t gamble(my dad used to spend 3 days a week solid gambling his butt off in Atlantic City so I know the pitfalls of that)
    Felt like a freeloader had a few tipped and left.
    Are Punji stick’s all that effective against starving and manic former financial workers?

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