Banks
Citigroup Plans Major Layoffs: Report
TSC Staff
06/23/08 - 08:39 AM EDT
Updated from June 22
Grappling with the credit crisis and its negative impact on the markets, Citigroup(C Quote) is planning a major round of layoffs in its investment banking division, according to a published media report.
The bank could let go as much as 10% of the unit's workers, which total about 65,000, according to the report, published Sunday on The Wall Street Journal's Web site. The report cited anonymous sources familiar with the situation and said the job cuts are likely to begin Monday.
Citigroup has lost $15 billion over the past two quarters and is likely to report billions more losses in the second quarter, the report noted.
Citigroup spokesman Dan Noonan was quoted saying, "Citi indicated earlier this year that it would be resizing this business in response to market conditions and as part of our ongoing re-engineering efforts," but the report said he did not confirm specifics about the coming layoffs.
Citigroup shares lost 87 cents Friday to close at $19.30.