Citigroup announces $10bn loss
Yikes.
The largest bank in the US has announced record net losses of almost $10bn, mainly stemming from its involvement in the high-interest, or “sub-prime,” mortgage crisis that has shaken financial institutions around the world. Citigroup said that 4,200 staff would lose their jobs after the bank lost more than $18bn in mortgage-related loans… The reduction of 4,200 jobs, a quarter of Citigroup’s workforce, is in addition to 17,000 announced in the spring, and Gary Crittenden, Citigroup’s chief financial officer, said that more job cuts would be on the way.
Congress is likely to convene hearings regarding the announcement.
UPDATE:
From Democracy Now!, EMI and Spring are in trouble, too.
Citigroup to Lay Off Up To 30,000; Sprint & EMI Plan Mass Layoffs Too
In business news, Citigroup is expected to announce a new wave of layoffs as the bank continues to lose billions of dollars in the subprime mortgage crisis. Citigroup could layoff as many as 30,000 employees. The bank plans to announce a writedown of twenty four billion dollars. Citigroup is not the only corporation preparing for mass layoffs. The telecom firm Sprint-Nextel has revealed it plans to lay off several thousand employees on top of the 5,000 laid off last year. And the music company EMI says it plans to let go up to 2,000 workers, about a third of its workforce.
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