More trouble at Bear Stearns as the company announced another 650 job cuts in addition to the 300 announced in late October, representing 4 percent of its global work force.
The investment bank and mortgage lender said the cuts will affect employees throughout the company, including layoffs at its U.K. Rooftop Mortgage Ltd. unit, and at operations in New York.
The layoffs come as the company looks to lower costs after revealing a $1.2 billion mortgage-related writedown that will be realized in the fourth quarter.
“As we indicated at the end of October, we are continuing to rationalize our business, monitor staffing needs and align our infrastructure with current market conditions,” Bear Stearns said in a statement.
Bear has executed a series of layoffs this year, including cuts at its Encore Credit subsidiary and consolidation of its U.S. based mortgage operations.
The company also announced a 61% drop in third quarter profit related to the ongoing mortgage crisis.
Bear Stearns, the largest underwriter of U.S. mortgage-backed bonds, employed 15,516 employees as of the end of August.
Shares of Bear Stearns were up $3.72, or 3.90%, to $99.15 in midday trading on the Wall Street, though they’ve lost roughly 38% of their value this year.
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