Report: Citigroup to lay off 10,000 and raise interest rates on some its cardholders.....

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Citigroup to lay off at least 10,000 workers: report

By Michael Kitchen
Last update: 7:22 a.m. EST Nov. 14, 2008Comments: 20

NEW YORK (MarketWatch) -- Citigroup plans to lay off at least 10,000 employees in its investment bank and other divisions throughout the world, starting this week, The Wall Street Journal reported Friday, citing unnamed people familiar with the matter. Chief Executive Vikram Pandit and his deputies instructed officials to slash their budgets for employee compensation by at least 25%, the report said. Meanwhile, the lender is also notifying some of its credit-card customers that their interest rates are being raised by an average of three percentage points, the report said. Citigroup is one of the nation's largest issuers of credit cards, with 54 million active accounts. The report cited an unnamed source as saying the rate increases would apply to less than 20% of Citigroup's card portfolio. Separately, Citi said a Wall Street Journal report Thursday that Win Bischoff is under consideration to become the company's chairman is "completely erroneous." The newspaper, however, said it stood by the report and that the move is still possible.


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