Report: Citigroup to hand out pink slips

June 23, 2008 4:25:12 PM PDT
Citigroup is reportedly preparing to fire thousands from its worldwide investment-banking division. According to The Wall Street Journal, the layoffs are part of a plan to cut about 10 percent of the staff of the 65,000-member investment-banking group.

The Journal, citing people familiar with the matter, says the fired employees could be notified as early as today.

The New York-basked global bank, along with much of Wall Street, is in the throes of recovering from bad investments on mortgages and leveraged loans that cut billions of dollars from its portfolio.

It's not clear if the reported job cuts will be in addition to cuts announced by Citigroup in April. After reporting a 5.1-billion-dollar first-quarter loss, the bank said it was reducing its staff by 9,000, in addition to the 4,200 job cuts the bank announced late last year.