Citigroup Plans Job Cuts (Update)

Updated from 6:20 a.m. EST

DUBAI, United Arab Emirates (AP) --Citigroup's(C Quote) chairman is hinting the banking giant will announce more job cuts Monday, and isn't ruling out the possibility executives will follow peers at Goldman Sachs(GS Quote) and forgo bonuses.

A person briefed on Citigroup's plans says the banking giant is cutting another 53,000 jobs in the coming quarters. The person requested anonymity because the plans haven't been made public yet.

The 53,000 job cuts are in addition to the 22,000 already being eliminated from the company's 375,000-member work force as of the end of 2007. The latest cuts bring the total job reductions to 20%.

Speaking briefly to the AP after a speech in Dubai on Monday, Chairman Winfried Bischoff says the company will make an announcement about its plans at 9 a.m. EST. He did not deny that job cuts are coming.

As for the question of lost bonuses for executives, Bischoff tells AP: "Watch this space."

Citigroup's CEO Vikram Pandit on Monday will attempt to rally employees with a speech aimed at restoring internal morale and allaying investors' fears over the company's strategy and share price, the Financial Times reports.

Concerns about the company have been heightened by the underperformance of Citigroup's shares, which ended last week below $10. The stock closed Friday at $9.52. Citigroup's market valuation is less than $51 billion, some three-quarters lower than when Pandit took over last December, according to the newspaper.

In a memo to staff announcing the "town hall" meeting, Pandit said Citi had "plentiful capital, abundant liquidity and our revenue is strong." The document, which was obtained by the Financial Times, said Pandit would talk about the "accomplishments over the past 11 months."

Reports at the end of last week had Citigroup planning to announce about 10,000 job cuts in the next few weeks.