Shares in Citigroup have dropped below $30 for the first time in five years, as the bank believes that it may have to cut thousands more jobs in order to save money.
“We are engaged in a planning process in anticipation of our new CEO, and our business heads are planning ways in which we can be more efficient and cost-effective to position our businesses in line with economic realities,” says Shannon Bell, Citigroup spokesperson, adding that specific numbers had not yet been confirmed.
As a result of the news, shares in Citigroup fell by 3.15% to $30.70 on the New York Stock Exchange, after dipping to just $29.75 in the afternoon and again dropping below $30 in after hours trading.
Citigroup had already cut 17,000 jobs before the credit crisis and is still looking for a replacement CEO, after Charles Prince resigned earlier this month following a $11 billion writedown for the fourth quarter.
This news comes despite Abu Dhabi Investment Authority’s $7.5 billion cash injection into Citigroup, which will buy it a 4.9% stake.