Citi, Goldman Cutting Jobs, Reports Say

Updated from 10:12 a.m. EDT.

The lingering credit crisis is taking its toll on Wall Street jobs, as Citigroup(C Quote - Cramer on C - Stock Picks) and Goldman Sachs(GS Quote - Cramer on GS - Stock Picks) are making major job cuts in their investment banking divisions, according to published media reports.

Citi could let go as much as 10% of the unit's workers, which total about 65,000, according to a 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.

Citi is about halfway to its goal, the Associated Press reported Monday.

Goldman also is expected to pare up to 10% of workers in a division that handles mergers and acquisition advice and corporate fundraising over the course of the year, The Financial Times reported late Sunday. The jobs cuts began last week and are outside of the firm's annual paring of the lowest performing 5% of its workforce.

The expected job cuts at the two banks highlight that pain is being felt not just at the hardest-hit banks, like Citi, but even at a firm like Goldman, which earlier this month reported a better-than-expected second quarter and is generally regarded as among the best-performing banks in the credit crisis.

Cramer: If I Were Citi's CEO

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.

"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," Citi spokesman Dan Noonan told the Journal, but the report said he did not confirm specifics about the coming layoffs.

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