BGN Entrepreneur

Lehman Brothers was founded in 1850. It has gradually grown into a diversified, global financial services firm. However, most recently, it is widely seen as most vulnerable investment banks in the Wall Street because of its mounting losses on mortgage-related investments, as well as the over expectation. The group’s shares have been pushed down by about three quarters this year. It just reported a loss of $2.8 billion in its second quarter, compared to a profit of $1.3 billion in the previous year.
Just as the struggling brokerage in Wall Street scrabbles to support its balance sheet via reducing costs and selling assets, Lehman Brothers is getting ready for the fourth round of job cuts in the past 12 months.
This round of job cuts will represent about 5% of its remaining workforce and bring the total redundancies since June last year to about 6,400. The redundancies are expected to be finalized and announced on or before the company reports its third quarter results in mid-September. Though relevant details have yet to be finalized, the job losses are expected to be extent across the country, even in the City of London.
The job cuts are just part of a broader drive by Lehman Brothers to boost its balance sheet. The group is also seriously considering selling its asset management division, including Neuberger Berman, the fund management business. The group is also sounding out potential buyers for $40 billion worth of troubled commercial mortgages and property on its balance sheet. The group has declined to comment on all possible movements in these aspects.

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