1,000 Layoffs For Loan Unit
Citicorp is moving to lay off about 1,000 employees in its St. Louis-based mortgage unit, a spokeswoman confirmed.
The cutbacks stem from a sweeping reorganization of mortgage operations unveiled in August. While mortgage-industry experts had predicted layoffs of 500 to 1,000, Citicorp had not specified a number until now.
Citicorp chairman John S. Reed told analysts Wednesday that the beleaguered company had laid off "a ton of people" Tuesday. The mortgage unit's cuts account for "part" of that, said spokeswoman Susan Weeks. Most other layoffs were outside the consumer area, she indicated.
Mr. Reed said that Citicorp's head count had fallen by 1,000 since midyear and by 6,000 since the end of 1990, to about 89,000 people.
About half the mortgage employees to be laid off are being notified this week, Ms. Weeks said, and the rest will be told in the next month or so. The layoffs should be completed by early 1992, she said. The 1,000 layoffs will reduce employment by nearly one-third at Citicorp Mortgage Inc.