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June 2008

Citigroup to lay off 9,000 as Q1 losses touch $ 5.1 billion

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
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25 Citigroup to lay off 9,000 as Q1 losses
touch $ 5.1 billion


Citigroup posted its second straight quarterly loss on
Friday, hurt by more than $ 16 billion of write-downs and costs related to
credit losses, and said it will cut another 9,000 jobs.

 

Though the $ 5.11 billion first-quarter loss was larger than
expected, analysts and investors expressed optimism that the largest US bank and
its new chief executive, Vikram Pandit, were taking necessary steps to move past
credit problems and drive down costs.

 



  •  Citigroup’s net loss pegged at $ 1.02 a share


  • Revenue has fallen 48% to $ 13.22 billion


  •  Citi has lost close to $ 15 billion in the last two quarters in asset
    writedowns


  • Bank has written down over $ 46 billion since the subprime lending crisis
    erupted mid-2007


  • Investment bank business has suffered the brunt of write-downs.

 


In the last two weeks, Citigroup has said it was selling its
Diners Club International credit card network and most of its North American
commercial lending and leasing business. Expenses, meanwhile, fell 2% from the
fourth quarter.

(Source : The Economic Times, 19-4-2008)

 

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