Citigroup Cutting 53,000 Jobs Worldwide

This is the second announcement of payroll slashing from Citigroup in recent weeks, as it announced in September that 22,000 jobs would be eliminated. Obviously, these steps are being taken to help stabilize the financial giant as it endures its fourth straight quarterly loss. There is some consolation in the news, as Citigroup currently maintains a higher credit rating than either Bank of America or Wells Fargo, with each recently making highly publicized acquisitions of other struggling financial outfits. Proponents of the job cuts are also pointing to the fact that many of the jobs being eliminated are through sales of divisions, ensuring that not every employee will "lose his job".

As developments unfold in the global financial crisis, it is becoming clear that major corporate players - the driving forces behind the global economy - must re-think their business models and attempt to free themselves from the massive credit-dependence that had previously allowed them to operate.

In much the same way that the U.S. automotive industry is at a crossroads, many of of the financial companies that have been granted access to the $700 Billion in approved bail-out money from the governments are also going to face tough decisions. While acquisitions, sales and mergers of individual pieces of companies may help, fundamental business model changes are likely the only way to ensure that a crisis of this magnitude can be averted in the future.