Citigroup's Layoffs Could Reach 24,000 This Year

[EV_Ares]

Citigroup plans to announce a writedown of as much as $24 billion and layoffs that could total as much as 24,000 due to subprime and credit-related losses, CNBC has learned.

The plans will be unveiled Tuesday by Citigroup's new CEO, Vikram S. Pandit, after the banking giant reports fourth-quarter earnings. At the same time, Citigroup could also announce that it is cutting its dividend payment by as much as 50 percent.

Citigroup is likely to cut between 17,000 and 24,000 positions over the course of the year through a combination of layoffs, attrition and selling off businesses as part of Pandit's cost-cutting plan, sources said. Previously, it was estimated that the layoffs could reach 20,000.

Pandit is looking to avoid taking a charge to earnings that's usually associated with large-scale layoffs, which is one reason he's considering a number of staff-cutting initiatives besides outright firings. It's unclear if he'll announce a specific number of job cuts on Tuesday.

A Citigroup spokesman had no immediate comment.

Link for article: http://www.cnbc.com/id/22639976

[L0oniX]

1. Good ...maybe they will stop sending me those fucking credit card apps.

[nightrider767]

2. Well the good news for employees...

Is that Ceo and Executive compensation packages will be unaffected..

Probably add to that, since Citigroup is going through such difficult times, they probably will come up with an Executive bonus, to retain key people.

[AngryAmish]

3. So?

Banks have been making and losing money for a long time. Bank of America was a regional bank until recently. Wachovia? Chase? Chase was Chase manhattan, merged with Chemical Bank and I think bought or was purchased by JP Morgan Bank.

Anyway, during these banking crises bank fold and or are bought up all the time. Titles change, suckers with billions buy and lose their money and people move from bank to bank.

[butterfly77]

4. We are not in a recession/depression

:sarcasm: