- Citigroup Lost $20 Million on Facebook IPO Trades
- Sticker Shock: What College Is Likely to Cost in 18 Years
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- Icahn Raises Stake in Chesapeake, Wants Board Seats
- Marc Faber: Chance of Global Recession Is Now 100%
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- What Happened to Stocks? Most Unloved in 50 Years
- Cool Jobs: From Gold Stacker to Bed Tester
- Many Greeks Moved Their Money Abroad Long Ago
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
MOST SHARED
- Marc Faber: 100% Chance of Global Recession
- Zero China Growth Is ‘Probable’: Gordon Chang
- Citigroup Lost $20 Million on Facebook IPO Trades
- What College Tuition Will Look Like in 18 Years
- China Growth Risks Signal Need for Fiscal Action
- Romney Leads Poll Of Small Business Owners
- 5 Spots Where the Dollar Buys a Great Vacation
- How to Trade on the Jobs Report
MOST POPULAR
HOT ON FACEBOOK
Lehman Brothers Laying Off 5% of Global Workforce
Text Size 
Investment bank Lehman Brothers is laying off 5 percent of its work force across all lines of its business, CNBC has learned.
The cuts are to come today, said sources within the firm who added that they expect further layoffs at Lehman.
Lehman employed about 28,600 people as of Nov. 30, 2007, according to the company's most recent annual report.
Shares of Lehman [LEH
Loading...
()
] were down more than 5 percent Monday.
Prior to Monday, Lehman had eliminated close to 4,000 jobs in the last year. Many were in its mortgage operations, which have been hurt by the nation's housing slump. Lehman is the largest underwriter of U.S. mortgage bonds, Thomson Financial said.
"There's a structural imbalance in the financial services industry," said Michael Poulos, head of financial services in North America at Oliver Wyman, a consulting unit of Marsh & McLennan Cos
Lenders worldwide have suffered well over $160 billion of write-downs as tight credit market conditions caused losses tied to mortgages and other risky debt.
Several major U.S. investment and commercial banks, including Bank of America [BAC
Loading...
()
]]] ]
Lehman has withstood subprime mortgage problems better than many rivals, and boosted profit 5 percent in its 2007 fiscal year. Chief Executive Richard Fuld was awarded about $22 million of compensation in that year, though about one-third came from stock-based awards for work in the prior year.
The company is expected to show a roughly 47 percent decline in first-quarter earnings when it reports results on March 18, according to Reuters Estimates.
Poulos said more job cuts are possible in the industry.
"We are definitely fielding a higher number of inquiries from clients looking for help in making their expense base reflect the market environment," he said.
- The Nasdaq has suffered the most from the EU crisis showing there's risk in the usual tech stocks.
- Targeting more Millennials is just one of the items brewing for consumers in the world of spirits.
- It seems many people may need a reminder of how NOT to act on a plane. Here are a few tips.
- Here are some very unusual roadside stops along American highways that might peek your interest.
- How three generations of Americans are dealing with the finances of retirement.
Data is a real-time snapshot *Data is delayed at least 15 minutes
