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Citigroup has 5.11-billion-dollar loss; 9,000 job cuts

Business Materials 19 April 2008 03:31 (UTC +04:00)

(dpa) - US banking giant Citigroup announced plans Friday to cut 9,000 jobs in the wake of a first-quarter net loss of 5.11 billion dollars.
Company chief financial officer Gary Crittenden announced the payroll cut plans for the bank which employs 370,000 people around the world.
The 9,000 job cuts come atop the 4,200 job reductions which Citigroup announced in January.
Crittenden's remarks came after the company reported its first- quarter losses which came after Citigroup had to write down 12 billion dollars' worth of loans and bonds in the ongoing subprime mortgage crisis.
The first-quarter red ink compares with a profit of just over 5 billion dollars in the same 2007 period and was somewhat higher than analysts' projections, according to the Bloomberg financial agency.
The losses came on revenues of 13.2 billion dollars. While this was down 48 per cent from the first quarter of 2007, it was some 2 billion dollars higher than projections given in a survey of analysts by Bloomberg.
Citigroup became the latest among major US financial institutions this week to report first-quarter problems in the further fallout from the mortgage crisis and US economic slump.
On Thursday, Merrill Lynch reported a net loss of 1.96 billion dollars after nearly 7 billion dollars in writedowns.
On Tuesday, Washington Mutual reported losing 1.1 billion dollars in the quarter, while a day before that, Wachovia Corp. posted a loss of 350 million dollars.
JPMorgan Chase on Wednesday reported net earnings of 2.37 billion dollars, but this figure was down about one-half from the year- earlier results.

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