Loss of Loans Means Loss of Jobs

The subprime mortgage mess has hit not just home loans but auto loans as well. Car manufacturers are reporting a drop in auto loans and car purchases across the board. Unfortunately, lack of auto loans means lack of need for jobs – and Citigroup seems to be hit the hardest.

The company has announced that they are cutting more than 230 local jobs out of the Dallas area with more than 100 of them being from their auto loan division. They say that they need to cut all areas of the finance department – which they hope will help with their bottom line.

The company has started the layoffs already, and will continue them through August 1st. The majority of the work they do in the department is to offer auto loans to consumers through their various dealerships that they do business with.

They will still have more than 600 employees in the state in their auto loan departments, and more than 16,000 in the state overall. They are also cutting jobs in other states, as they have just reported a first quarter loss of $5.1 billion.



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