Citigroup Plans to Cut More Than 5% of Securities Employees
By Joyce Moullakis
March 20 (Bloomberg) -- Citigroup Inc., the biggest U.S. bank by assets, plans to cut more than 5 percent of staff in the securities unit to rein back expenses after U.S. subprime- mortgage related losses.
``Each year we identify the bottom 5 percent of performers in the institutional clients group, and some number of these people leave the firm,'' London-based spokesman Adam Castellani said in an interview today. ``This year we will have a larger number of reductions as we continue to strengthen the business and lower our expense base.''
Citigroup plans to fire 2,000 investment bankers and traders by the end of the month, the New York Times reported earlier today, citing unidentified people close to the situation. Castellani would not confirm nor deny the report.
Border's Facing Liquidity Issues(MarketWatch}:
The Ann Arbor, Mich., bookseller determined that it needed additional capital for 2008, and the difficult credit markets rendered some financing alternatives unavailable, Chief Executive George Jones said in a statement. Absent a financing deal, "liquidity issues may otherwise have arisen in the next few months," the executive said. Jones said 2008 will be a "challenging year for retailers."
"Challenging market conditions have continued to negatively affect the motor home market, with retail sales of Class A and C motor homes for the industry down double digits each of the last three months as reported by Statistical Surveys, Inc. of Grand Rapids, Mich., the retail reporting service for the RV industry," said Winnebago Industries' President Bob Olson. "While the Federal Reserve's interest rate cuts should have a positive impact long-term, the reductions in interest rates have not yet reached the retail customer which may lead potential buyers to delay their purchases. Many economic factors are negatively affecting consumer confidence, resulting in a very soft retail motor home market and reduced demand from our dealers. As a result, we reduced our production levels during the second quarter to more closely match demand. Additionally, our overall employment level was reduced by approximately 300 people, or 9 percent, through layoffs and attrition. These measures were taken to help us achieve our primary objective, which is to build quality motor homes while remaining profitable." One time severance-related costs of approximately $500,000 were recorded during the quarter within general and administrative expenses.