Lehman To Fire 1,500 By Mid-September

Lehman Brothers plans to cut nearly 1,500 employees before it announces its third-quarter results.

NY Times: Lehman Brothers, the ailing Wall Street bank, plans to lay off as many as 1,500 employees, or nearly 6 per cent 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 workers since June 2007, mostly in its mortgage origination and securitization businesses. It was not immediately clear what divisions would bear the brunt of the latest cuts but virtually every Wall Street business is struggling, and investment bankers and traders at Lehman were anticipating layoffs…

The bank is scrambling to piece together a plan to shore up its finances ahead of 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.

See Also: Laid-Off Bankers Living It Up This Summer

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