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March 14, 2008

Lehman Brothers to cut jobs

Lehman Brothers Holdings Inc., the largest underwriter of mortgage-backed bonds is struggling to cope with the economic slowdown, and thus is eliminating 5% of its total employees. The New-York based firm has not yet announced the reductions, but the cuts are expected to be spread across all divisions and regions and about 1,400 employees will lose their jobs.

Mannah Burns, a Lehman spokeswoman, declined to comment on the rumours. Of course, job cuts are expected everywhere and are especially relevant to the financial institutions, but let’s not forget that these news come only months after Lehman eliminated a total of 3,900. Most of the jobs lost in the flows of events following the start of the credit crunch crisis, were as expected in departments that made and/or traded home loans.

Job cuts at Wall Street firms have reached a total of 30,000 employees since the collapse of the US subprime mortgage market, seven months ago.

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