Lehman To Cut 1000 1500 Jobs


For the last two weeks we've been hearing rumors of layoffs at Lehman. Last week people at Lehman were saying that layoffs were expected to come this week, before the Labor Day holiday. Now Bloomberg is reporting that "people familiar with the matter" estimate that Lehman will cut as many as 1,000 jobs. The good news is that Bloomberg's sources say the Lehmanites will hold on to their jobs for a little longer, at least until Lehman announces its third-quarter financial results.
Why would Lehman hold off? We're told that Lehman is afraid of sending out signals about the size of its losses ahead of the third-quarter financials. The idea is that if the layoffs cut deeper than expected, investors may assume that they reflect bigger than expected losses. Better to announce the news all at once.
Update: The New York Times says 1500 employees, or nearly 6 percent of its work force, will get the axe before the third-quarter results are in.

Lehman Said to Be Poised to Eliminate as Many as 1,000 Jobs