MarketWatch reported that "Citigroup shares fell more than 5% Monday, falling under $30 for the first time in five years after CNBC reported the firm could lay off up to 45,000 staffers. "
"The expected layoffs are the result of several billion dollars of mortgage losses at Citigroup.
The bank said Monday that it's in a planning process to become more efficient and cost effective as the financial-services giant grapples with billions of dollars in losses from the subprime mortgage-fueled credit crisis. "
"CNBC described the layoffs as "massive" and said they would not be restricted to the fixed income and mortgage divisions."
"In April, Citi set layoffs of 17,000 people, or about 5% of its more than 300,000 employees. "
The layoffs are probably just getting started in the financial sector. The official unemployment rate remains low but is expected to increase as layoffs continue in the financial and real estate related sectors.