Lehman Bros. To Eliminate 1,400 Jobs
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Lehman Brothers Holdings Inc., the largest underwriter of mortgage-backed bonds, is eliminating 5% of its workforce as credit markets remain frozen and the American economy slows, a person briefed on the plan said.
The cuts will affect all divisions and regions, according to the person, who declined to be identified because the New York-based firm hasn’t announced the reductions. Based on Lehman’s employee count at the end of November, about 1,400 jobs will be lost.
The chief executive officer of the company, Richard Fuld, already eliminated almost 3,900 positions, mostly in units that made home loans, following the collapse of the American subprime mortgage market last year. The bank, which closed its subprime unit and reported record earnings for 2007, awarded Mr. Fuld $40 million in annual pay.
