Lehman Brothers plans to lay off 1,500

Lehman Brothers, the ailing Wall Street bank, plans to lay off as many as 1,500 employees, or nearly 6 percent of its work force, before it announces third-quarter results on Sept. 15, a person briefed on the plans said Thursday.

Lehman has already laid off 6,000 people since June 2007, mostly in its mortgage origination and securitization businesses. It was not immediately clear what divisions would bear the brunt of the new cuts, but virtually every Wall Street business is struggling, and investment bankers and traders at Lehman are anticipating cuts.

A Lehman spokesman declined to comment.

The bank is scrambling to piece together a plan to shore up its finances before it announces its third-quarter results. Those results are expected to be grim, and investors expect the bank to take dramatic steps before it announces write-downs that analysts say could be as much as $4 billion and an estimated loss for the quarter of $3.30 a share.

Read more

Leave a Reply