As deal flow dwindle and parent companies shrink their balance sheet to boost capital, global banking giants such as Citigroup, HSBC, Bank of America Merrill Lynch and Barclays are slashing jobs in their Indian operations at the fastest pace since the 2008 credit crisis. According to media reports, Citigroup has cut 100 jobs and HSBC will soon show the door to scores of its staff here as part of its 30,000 reductions internationally. French bank BNP Paribas has eliminated more than a dozen in recent months and Royal Bank of Scotland has put its equities and mergers advisory business on sale and that may lead to layoffs. However, the job cuts in India are a fraction of the more than 200,000 job losses announced by financial firms in 2011. Nonetheless, these job cuts are in contrast to what state-run banks are doing. Banks led by Punjab National Bank and Union Bank of India are estimated to be hiring more than 45,000 during the fiscal.
However, the layoff is not only restricted to the banking sector and its impact on India. While Kodak has filed for bankruptcy, NEC - a Japanese electronics giant - citing its losses over the last 9 months, has announced that it would axe 10,000 jobs worldwide. Out of these, the reduction in headcount would be 7,000 in Japan and 3,000 overseas. The company expects that the current restructuring would enable a business structure with high profitability.