Skip navigation
Watchlist Sponsored By :


Current DateTime: 10:28:37 23 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Fashion Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 10:28:38 23 Nov 2009
LinksList Documentid: 33793611
  • How Much Do You Know About Green?

      Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?


Current DateTime: 10:28:38 23 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Financial Giants Gear Up To Cut Thousands of Jobs
By: CNBC.com With Wires | 03 Jan 2008 | 12:34 PM ET
Text Size

After geting burned by billions of dollars in losses from the mortgage meltdown, financial giants like Merrill Lynch and Citigroup are gearing up for major job cuts in the new year.

Merrill Lynch [MER  Loading...      ()   ] could start announcing layoffs as soon as Thursday, CNBC has learned.

The jobs cuts, which may be made over several weeks, could total up to 10% of those employees who are not in investment banking or brokerage operations, or about 1,600 positions.

The credit and bond departments are most at risk.

Merrill Lynch had about 64,000 employees at the end of September, so a reduction of 1,600 employees would represent less than 3 percent of its total work force.

Merrill had no comment, and the final cuts will be up to the firm's new CEO, John Thain.

Thain is still trying to raise more capital for the firm, which reported writedowns of $8.4 billion in the third quarter because of bad bets on mortgage-backed securities. Analysts expect a further $10 billion in charges when it posts fourth-quarter results in January.
Merrill Lynch
CNBC.com
Merrill Lynch

Thain is in discussions to bolster the company's capital base through further investments by sovereign wealth funds. This would add to last week's deal to sell up to $6.2 billion in shares to Singapore’s Temasek and asset manager Davis Selected Advisers.

Meanwhile, Citigroup is expected to begin layoffs next week, according to people familiar with the matter.

Citigroup [C  Loading...      ()   ] is expected to cut between 5 percent and 10 percent of its staff of about 320,000, these people within the firm say.

Neither Citigroup's Chief Executive Vikram Pandit nor the firm's public relations staff have issued a formal announcement on the matter.

Citigroup has reported about $6.5 billion in third-quarter writedowns from mortgage-related losses and could face a total of $22 billion in writedowns.

National City [NCC  Loading...      ()   ], one of the 10 largest U.S. banks, said Wednesday it will eliminate 900 jobs as it stops offering mortgages through brokers.

The company also said it plans to raise more capital to help it cope with deteriorating credit markets, and hired Goldman Sachs [GS  Loading...      ()   ] as an adviser.

Chief Executive Peter Raskind said in a statement that National City needed to take "aggressive steps" to cope with disruptions in the mortgage, housing and credit markets.

Cleveland-based National City operates about 1,445 branches, mainly in U.S. Midwest states.

It has significant operations in Florida, Ohio and Michigan, which ranked second, third and fifth nationwide in foreclosures in November, according to RealtyTrac.

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • The show attracts a big TV audience every year, but this year it may take on even more importance.
  • …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
  • Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
  • CNBC’s Phil LeBeau took a test drive of GM’s flagship electric car. Here’s what he thought of the Volt.
  • A Macau casino will open Asia's first Michael Jackson shrine after its owners made a key purchase at a US auction.
  • CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.
ADD COMMENTS
Remaining characters


Current DateTime: 06:27:24 23 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:08:24 23 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 10:23:55 23 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 09:12:20 23 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters