Citigroup to slash 9,000 more jobs

[marmar]

from AP, via Yahoo!:



Citigroup reports $5.1 billion loss on hefty write-downs
By MADLEN READ, AP Business Writer
1 hour, 21 minutes ago



NEW YORK - Citigroup Inc. lost $5.1 billion during the first quarter and will eliminate about 9,000 more jobs, as poor bets on mortgages and leveraged loans lopped billions of dollars from its investment portfolio.

Write-downs related to mortgages and turmoil in the credit markets reached more than $12 billion, and costs stemming from consumers' credit problems surpassed $3 billion, the bank said Friday. And in a conference call with analysts, Citigroup chief financial officer Gary Crittenden said the bank, seeking to cut costs, is eliminating about 9,000 additional jobs.

Citigroup has announced 13,200 job cuts since the credit crisis began slamming the banking industry last summer. The bank announced 4,200 cuts in January, and more work-force reductions are likely.

"We're very, very focused on efficiency," said chief executive Vikram Pandit during a conference call.

The most recent quarterly shortfall at the nation's biggest bank by assets was not as massive as the nearly $10 billion loss it suffered in the fourth quarter of last year, though.

Citigroup shares jumped more than 6 percent, or $1.46, to $25.46 in early trading Friday, as many investors had been bracing for even more dismal results. Citigroup's stock has fallen 18 percent since the beginning of the year.

But Citigroup essentially lost in the first three months of the year, $1.02 per share, what it made in the same period in 2007 — $5 billion, or $1.01 per share. Analysts, on average, had expected the New York bank to lose 95 cents per share, according to a Thomson Financial survey.

"We're not happy with our financial results this quarter — although they're not completely unexpected, given the assets we hold," Pandit said. ......(more)

The complete piece is at: http://news.yahoo.com/s/ap/20080418/ap_on_bi_ge/earns_citigroup

[Dr.Phool]

1. This is obviously good news!

Their stock price jumped.:sarcasm: