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Salomon cuts payroll
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October 15, 1998: 4:01 p.m. ET
Citigroup unit pares fixed-income operations; more cuts expected
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NEW YORK (CNNfn) - Salomon Smith Barney said Thursday it has begun to reduce its fixed-income staff as part of a broader swath of job cuts contemplated by Citigroup, the new entity created by the merger of Salomon parent Travelers' Group and Citicorp.
"People are being told starting yesterday and through tomorrow," said Arda Nazerian, a Salomon spokesperson.
Nazerian wouldn't say Thursday how many jobs are on the block, other than to say it will be "a low number."
Last month, however, Citigroup intimated that the it may cut about 5 percent of the combined company's workforce as a result of the merger and volatile market conditions. That would amount to about 8,000 jobs.
Nazerian said Thursday Salomon's cuts were included in the earlier reduction projection, and therefore don't represent additional reductions.
A person familiar with the company's plans said further layoffs are on the horizon that likely will affect the firm's 4,500-strong capital markets unit.
Salomon's fixed-income operations include the firm's Treasurys desk, corporate bonds, mortgage- and asset-backed securities and derivatives.
Salomon is the second Wall Street giant this week to cite market-related turmoil as a factor in a major round of workforce reductions.
On Tuesday, Merrill Lynch & Co., the nation's largest brokerage firm, said it is slashing 3,400 employees and 900 freelance workers from its payroll because of global economic turmoil. 
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Salomon Smith Barney
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