Monday, June 23, 2008

More Job Cuts on the Way

According to WSJ, Citigroup is reportedly cutting 10% of it's Investment Bank workforce.
The New York bank, which has suffered $15 billion in losses over the past two quarters and is likely to rack up billions of dollars in additional write-downs in the second quarter, this week will dismiss thousands of investment-banking employees world-wide as part of a plan to cut the roughly 65,000-employee group by 10%, the people said. Pink slips are likely to be handed out Monday.
Goldman Sachs is also reportedly cutting 10% of investment banking division.
As we have said in the past, the job market and mortgage rate will determine how deep the housing slump will be. The rates have been rising steadily and now the job market is getting worse.

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