Banking job losses mount as Bear Stearns cuts 300 posts
by Gill Montia
Bear Stearns, the investment bank, is reducing staff numbers by 300 in response to the crisis in the credit markets and losses sustained by two of its hedge funds.
The difficulties with the hedge funds caused damage to the bank’s reputation and prompted some customers to transfer assets to competitors.
The job cuts will be amongst mortgage workers and are in addition to the 240 jobs lost in August.
The news from Bear Stearns brings the number of job losses announced by banks in the past few days to over 4,600.
Yesterday, Credit Suisse announced 170 job losses, in addition to the 150 announced last week. They will mostly affect staff in the bank’s US operations.
The 150 redundancies announced last week are mainly in mortgage-backed securities and of the 170, half will be from its fixed-income division. The remainder are performance-related.
Morgan Stanley announced 600 job losses on Monday and UBS is cutting 1,500 jobs in response to its third-quarter results.
Lehman Brothers is also reducing staff numbers, by 2,050.
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