Although an exact figure has not been confirmed, media reports speculate that up to an additional 45,000 jobs could be lost in the next couple of months. This move is part of the bank’s cost-saving initiative, which is seeking to earn back the billions of dollars lost as a result of mortgage writedowns. Citigroup is anticipating a further $4 billion loss related to the sub-prime mortgage crisis in the first quarter of 2008, The Times has reported.
The redundancies also come as the group searches for a new chief executive to replace Charles Prince, who resigned after the massive loss in profit. According to The Times, the company is drafting a rough plan that incorporates thousands of job losses, which will need to be signed off by the newly appointed CEO.
Following news of the layoffs, Citigroup shares plunged to under $30 for the first time in five years, MarketWatch has revealed.
