Are financial companies using the economic crisis to offshore more jobs in the United States while taking our tax dollars?
CNN Money reported on the Citigroup layoffs:
Citigroup unveiled bold plans Monday to cut more than 50,000 jobs, the
latest move by the struggling bank to cut costs in order to weather the credit
crisis plaguing Wall Street.
Making the announcement just before the opening
bell, the company said it would reduce its workforce to approximately 300,000
employees. As of the end of September, the New York City-based bank had about
Citigroup CEO Vikram Pandit, who was appointed last December following
the hasty departure of former chief Charles Prince, addressed the job cuts at an
employee town hall meeting held Monday morning.
"There is nothing easy about these decisions and the impact on our
people,"Pandit told employees. "We do this because we must and not because we
Could there be a correlation between the layoffs in this country and the outsourcing of work to India?
Just three days after the layoff announcement at Citigroup, web site SiliconIndia carried a story reporting that "India is raining jobs".
Bangalore: Even as the deteriorating economic conditions
are rendering thousands jobless worldwide, India seems to be bucking the
trend. In just one week, companies have unveiled plans for massive
hiring.The IT outsourcing sector now has huge hiring plans, despite
being vulnerable to the global slowdown. The top five IT companies are
set to recruit over 80,000 people this year even after revising earlier
Tata Consultancy Services (TCS) and Infosys Technologies - both have adopted a strategy of staggered recruitments - so far have not scaled back its hiring targets announced earlier this year.
TCS, in fact, is set to hire around 48,000 people - just a few thousand
short of the number its top customer Citigroup announced in it plans
to shed in the coming months.
There is no direct connection between these two stories. I am not against the idea of using outsourcing as a business tool. I just believe strongly in transparency. If these jobs are in fact being shipped offshore by Citigroup, they should be upfront about it.
I would really be angry to find out that jobs were being sold out the back door while may tax dollars were being poured in the front door of Citigroup.