The beginning of the end at Citigroup?

What to make of the additional 53,000 jobs cuts at Citigroup? The cuts, part of an on-going effort to slash the head count by 20 percent from a high of 375,000, are certainly draconian, but they will not be enough. Cost controls alone will not be able to revive Citi. The fact that the company seems to be moving mainly on the expense side is not a good sign.

Even if Citi had agreed to merge with Goldman Sachs, these sort of job cuts would have happened, but the remaining core would have emerged in stronger shape. As it stands now, Citi will merely be smaller. The strategic equation has not changed, which raises the issue of accountability. Citi is starting to resemble the McCain campaign--as the inevitable becomes clear, the infighting really kicks up. Whenever a board is forced to issue a statement standing by its chairman, you know something is wrong. We'll get something dramatic fairly soon.

For more:
- here's an AP article
- CEO Vikram Pandit on the cuts. Video

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