This job.. this.. these powers. He knows this is a punishment because of what he did way back in New York. But this... All this seems very extreme.

Loki got transformed into the grim reaper as punishment. His adoptive father Odin thought it a good punishment for Loki. Even though it was Odin's fault for making Loki the way he is.

Loki wanders the grounds, he has his scythe in his hand. He has a mask over his face. He really dislikes this punishment. It's too extreme.