Citi Could Cut 30,000, More Pain Imminent |
Date: Wednesday, March 5, 2008
Author: HFN Daily report
Citi could lay off over 30,000 in the next year and a half.
That total exceeded the 24,000 figure expected.
Citi is now in the middle of a companywide review in order to determine how much of its workforce will be cut.
CNBC pointed out that, in the past, Citi would fire people then rehire them in some capacity. But the prospect of worsening financial performance would mean a permanent reduction, CNBC said.
Citi posted a fourth-quarter loss of $9.83 billion because of its exposure to subprime mortgage. That loss meant an $18 billion writedown. Another massive writedown is expected.
Meanwhile, Merrill Lynch Chief Executive Officer John Thain and the head of Dubai International have been quoted as stating that Citi will need another large capital infusion.
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