Citigroup, Goldman plan to cut 12,000 jobs

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Work from home helps cut expenses

Nov 6: Citigroup Inc and Goldman Sachs Group Inc, faced with a weakening economy and the prospect of mounting losses, began firing workers as part of the firms' plans to cut more than 12,000 jobs, people with knowledge of the matter said.

Goldman, which converted last month from the biggest US securities firm into a commercial bank, on Wednesday began telling about 3,200 employees, or 10% of its workforce, they were out of a job, according to one of the people who declined to be identified because the decisions were confidential.

Citigroup has been notifying staff this week who are affected by the bank's plan to discard 9,100 positions over the next 12 months, or about 2.6% of its headcount, another person said.

The ousted workers add to the swelling ranks of Wall Street's unemployed, their lives upended by the credit crisis. Both New York-based firms have already cut staff, and are among the banks and brokerages worldwide that have shed almost 150,000 jobs since the subprime mortgage market collapsed last year.

Led by Chief Executive Officer Lloyd Blankfein , Goldman said in April it would fire more after culling about 1,500 underperformers. Vikram Pandit , Citigroup's CEO, shed 12,900 over the past year.