Citigroup Seen Cutting Work Force by 5%-10%

Charles Gasparino, On-Air Editor
Monday, 7 Jan 2008 | 8:26 AM ET

Citigroup's new Chief Executive Vikrum Pandit continues to work on a restructuring program, the details of which will likely be announced next week, according to people familar with the plan.

Wall Street Job Cuts
New details on layoffs for Citigroup and Merrill Lynch, with CNBC's Sharlie Gasparino

Citi is mulling a work force reduction of between 5 percent and 10 percent of its work force of 327,000, these people say.

The formation of the restructuring plan appears to be taking longer than expected due to the extent of the problems at Citigroup.

Citigroup is one of the biggest victims of the credit crunch caused by the subprime-mortgage crisis.

Separately, Merrill Lynch began handing out bonuses last week, which are sharply lower than they were last year.

Some people have said the bonuses may be between 60 percent and 80 percent lower than they were last year in certain divisions.

  Price   Change %Change