Citi Cuts Do Not Inspire Confidence (Update)

Updated from 11:59 a.m. EST

Citigroup's (C Quote) deep cut to its global workforce is a much-needed move for the bloated giant, but investors and market observers are growing less confident management can steer the ship in difficult economic times.

Shares fell as much as 7% before rebounding slightly on Monday, after the New York banking titan said it was cutting approximately 53,000 more jobs over the coming quarters. Citi, which suffered massive losses from deteriorating debt, said total headcount is being reduced by 20% from its peak of 375,000 at the end of 2007; the company had already announced in October that it was eliminating about 22,000 jobs from those levels.

The plans, posted on the company's Web site, were discussed by CEO Vikram Pandit as part of the company's town hall meeting with employees in New York Monday. Ironically, the meeting was meant to rally beleaguered Citi employees. ...