Citi Cuts 30 in Structured Credit Group
Citigroup has dismissed about 30 employees in its structured credit group which helps put together collateralized debt obligations, a source familiar with the matter said.
The cuts come amid dramatic slowdowns in the market for CDOs as the subprime mortgage crisis has shaken investor faith in the products.
The dismissals come a week after newly-appointed Chief Executive Officer Vikram Pandit pledged a thorough cost review at Citigroup.
Citi said last month it may write down $11 billion in assets linked to subprime mortgages in the fourth quarter.
Citi said in a statement, "We make targeted reductions from time to time to position our businesses in line with economic realities."