Citigroup to cut 11,000 jobs as it looks to trim expenses, familiar story in stressed industry


Citigroup said Wednesday that it will cut 11,000 jobs. This is close to 4% of Citigroup’s entire workforce. Citi said it expects the cuts to save $900 million next year, and more in the following years. This job cut will bring greater returns for Citigroup. However, for these 11,000 workers, there will be negative results. Unemployment levels will rise resulting in an economy producing below its potential. Now, actual output will be less than potential output. This could be examined on a Production Possibility Curve.  It will be interesting to see how these cuts impact Citigroup’s overall performance.

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