Citigroup Seen Cutting Work Force by 5%-10%

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.

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.