Citigroup To Layoff Up To 24,000

Citigroup may layoff between 14,000 and 24,000 employees in 2008, according to a CNBC article. The job cuts are related to losses due to subprime and credit-related losses, and part of Vikram Pandit’s, the bank’s new CEO, plan to cut costs. Citigroup is also expected to cut its dividend. Merrill Lynch has also begun laying off people, although on a smaller scale. Mass layoffs, inflation, and credit-related problems are undermining consumer spending, with consumer confidence at a 15-year low. Stores and credit card companies are reporting a slowdown in spending since December, even among wealthier consumers. High-end stores, until recently considered immune to economic slowdowns, are reporting lower sales, and late payments on credit cards are surging. This is not officially a recession, but it could be a prelude.