Citigroup posted a fourth-quarter loss of $9.83 billion, its first loss since the bank was created in 1998 from the merger of Citicorp and Weill’s Travelers Group.
Citigroup’s job cuts could reach 30,000 or more over the next year and a half because of increasing writedowns from subprime-related debt, CNBC has learned.
The layoffs would exceed the previously reported 24,000 job cuts that had been expected at the banking giant.
Chief Executive Vikram S. Pandit is currently conducting a massive cost review and could cut as much as 10 percent of the bank’s workforce of 370,000, according to people familiar with the situation.
In the past, Citigroup would lay off people and then hire them back as consultants. But with more bad-debt writedowns looming, Pandit wants to make the cuts permanent, sources say.
“They are asking managers if you have a task that takes six people, implement a plan where it only takes four people to complete,” said one manager.
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