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Citigroup to Layoff 1,000 Employees

Rising mortgage rates are reducing consumer demand


CitigroupOne of the nation’s largest banks has announced a new round of layoffs.

The mortgage lending unit of Citigroup (C) will shed about 1,000 workers, roughly 8% of the unit’s total workforce. Most of the lost jobs will come from Citigroup’s mortgage operations in Las Vegas, though about 100 jobs will be lost at its Irving, Texas, offices, Reuters notes.

Citigroup’s move comes as mortgage interest rates rise, reducing applications for new loans. Fewer mortgage defaults and delinquencies are driving 200 of the job cuts, while the remaining 800 lost positions are drawn from the bank’s mortgage underwriting, fulfillment and sales staff.

While Citigroup is the third largest U.S. bank, it is only the sixth largest mortgage lender in the country, with just 3.9% of the national mortgage loan market.

By contrast, mortgage loan leaders Wells Fargo (WFC) and JPMorgan Chase (JPM) have 22.5% and 10.9%, respectively.

Last month, Wells Fargo said it would trim 2,300 workers from its mortgage lending unit.

Shares of Citigroup fell about 1% in Tuesday morning trading.

Article printed from InvestorPlace Media,

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