Citigroup to cut jobs and dividend
Citigroup Inc. plans to cut more than 20,000 jobs, slash its quarterly dividend, and collect at least $10 billion in cash from outside investors to shore up capital eroded by subprime losses, the Wall Street Journal reported yesterday, citing unidentified people familiar with the matter.
Citigroup Inc. plans to cut more than 20,000 jobs, slash its quarterly dividend, and collect at least $10 billion in cash from outside investors to shore up capital eroded by subprime losses, the Wall Street Journal reported yesterday, citing unidentified people familiar with the matter.
About 6,500 of the more than 20,000 job cuts will be in the investment bank, the Journal said. The largest investor to add new capital is the Government Investment Corp. of Singapore, the report said. The Kuwait Investment Authority, Saudi Prince Alwaleed bin Talal, and at least one U.S. fund management firm are also investing in Citigroup, the Journal said.
Citigroup spokeswoman Christina Pretto didn't immediately return a call seeking comment.
Citigroup, based in New York, was scheduled to report fourth-quarter earnings this morning.
Citigroup's most recent quarterly dividend was 54 cents a share, and the payout hasn't been cut or suspended since the firm was created in the 1998 merger of Travelers Group Inc. and Citicorp.