Citi and Merril 'plan layoffs'

Citigroup, the world's largest bank, could write down $24 billion (£12 billion), according to a report by CNBC.

In the continuing effort to fight the costs brought on by the mortgage crisis, Citi plans to lay off as many as 20,000 workers, while plans to lay off 800 workers at financial management firm Merril Lynch are already underway, according to the US news provider's report.

Citi's plan will be revealed when it announces its fourth quarter earnings tomorrow. Plans to slash its yearly dividend payment to save more cash may also be announced.

The firm also plans to raise as much as $15 billion (£7.5 billion) through various foreign and domestic entities, the report says.

At the same time, Merril will apparently seek to raise capital with help from the Kuwait Investment Authority and continue layoffs.

The wealth management company expects writedowns to the tune of $15 billion (£7.5 billion).