Citigroup plans to announce a writedown of as much as $24 billion and layoffs that could total as much as 24,000 due to subprime and credit-related losses, CNBC has learned.
Oliver Quillia for cnbc.com
Citigroup plans to announce a $24 billion writedown and layoffs that could total as much as 24,000.
The plans will be unveiled Tuesday by Citigroup’s new CEO, Vikram S. Pandit, after the banking giant reports fourth-quarter earnings. At the same time, Citigroup could also announce that it is cutting its dividend payment by as much as 50 percent.
Citigroup is likely to cut between 17,000 and 24,000 positions over the course of the year through a combination of layoffs, attrition and selling off businesses as part of Pandit’s cost-cutting plan, sources said. Previously, it was estimated that the layoffs could reach 20,000.
Pandit is looking to avoid taking a charge to earnings that’s usually associated with large-scale layoffs, which is one reason he’s considering a number of staff-cutting initiatives besides outright firings. It’s unclear if he’ll announce a specific number of job cuts on Tuesday.