Lehman to Cut 1,400 Jobs Across All Lines
Lehman Brothers has joined the list of investment banks making broad job cuts. It's laying off about 1,400 people, or 5 percent of its work force.
According to media reports, the cuts will take place across all business lines. What's more, unnamed sources inside Lehman told CNBC they expect further layoffs there. The bank ended 2007 with 28,500 employees.
Since mid-2007, Lehman has laid off thousands of people in a series of steps, most recently in January when it slashed operations at its Aurora residential lending unit, eliminating 1,300 jobs. However, until now the bulk of the job cuts affected mortgage originators - a retail-oriented, relatively low-paying activity.
Lehman has fared better than most of Wall Street in containing the damage to its own finances from defaulting sub-prime mortgage loans and a plethora of investment products tied to them.
Its good fortune may now be running out. The bank is expected to mark down the values of its mortgage and loan assets by at least $9 billion when it reports first-quarter earnings on March 18, according to Dow Jones Newswires.