Trouble At The Top
Citigroup, the worlds largest company according to Forbes, is likely to cut dividends and significant layoffs in an attempt to save money.
Citigroup has written down losses in excess of $20bn. Despite cash injection of $10bn, the company has been hit by the subprime-mortgage issues plauging the financial world.
Dividend Cut
The bank is expected to cut dividend payments after a meeting held on Monday to discuss the companies troubles. The exact dividend cut is unknown but many experts predict a cut of 50%, taking the dividend from $0.54/share to $0.26/share.
Vikram Pandit is also expected to reveal details of the cost-cutting procedure facing Citigroup. Part of the cost-cutting may include substantial job losses at the company. However, exact details are unclear at the present time.
We previously discussed experts predictions of losses in 2008. Citigroup appear to be the first large company to be hit this year, but others are likely to follow.
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[...] Citigroup announced large write-downs earlier this week, Wall Street investment bank Merrill Lynch has announced further write-downs [...]