Citigroup Earnings Down, Jobs Cut

  • April 21, 2008
The company, which owns Citi bank and investment bank Smith Barney, reported a $5 billion net loss for the first quarter, with earnings down $1.02 a share.

It attributed the loss to sub-prime mortgage and reflected nearly $17 billion in write-offs and loan loss reserves.

The company also announced it would cut 9,000 worldwide--about 2.5% of its total staff--over the next year.

"Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions," said Citigroup CEO Vikram Pandit, in a statement. "At the same time, we are taking the necessary steps to make Citi more efficient while fostering a culture of accountability and teamwork."

--Aaron Baar



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