Citigroup slashes tens of thousands from payroll
Published: Tue, Nov. 18, 2008 12:30AM
Modified Tue, Nov. 18, 2008 04:50AM
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closeNEW YORK -- In a stunning sign of the weakening job market, Citigroup announced some of the most severe cuts in the history of U.S. business Monday -- 53,000 jobs.
The cuts will leave Citi about 20 percent smaller. At its peak in 2007, Citi had 375,000 employees.
Citi is the only big bank still standing that has posted four straight quarterly losses. And if the bank takes more hits due to the worsening credit climate -- in mortgages or in other consumer debt like credit cards -- it might have to cut costs further.
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"Of the big banks, Citi is the sickest dog," said Robert Howell, a finance professor at Dartmouth's Tuck School of Business.
The government has invested $25 billion in Citigroup as part of the $700 billion financial rescue package.
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