Shares of Citigroup (C) were pummeled, as reports the company could lay off up to 45,000 workers resulted in the company shares dropping below $30 for the first time in five years. At the close of the market, it rebounded a little to finish at $30.70 a share. It reached low of $29.75 on Monday.
The reason for the layoffs are directly connected to the mortgage losses at Citigroup, which is at least several billion dollars.
While most are reporting the the potential huge numbers of layoffs, spokesman for the company Michael Hanretta said that any specific numbers reported "are not factual."
The bank reported they're responding to the crisis by working on ways to increase efficiency and being more effective with costs.
We'll probably see a lot more of this in the industry, as the real impact of the subprime mortgages is understood and measured. It's probably going to get worse before it starts to get better.
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