Lehman Brothers to Cut 850 More Jobs

September 6, 2007 No Comments »

Lehman Brothers announced today in a statement that it would be cutting an additional 850 jobs because of reduced operations both in the United States and abroad.

Lehman also announced that it would shut down its Korean mortgage unit, and that the UK operations would be “rescaled”.

“We now have a business that is sized correctly for the current environment,” Ted Janulis, global head of mortgages at Lehman, said in the statement.

The firm is also merging its worldwide residential mortgage origination and servicing businesses Aurora Loan Services, Libertus, and ELQ Hypotheken under the name Lehman Mortgage Capital.

The cuts and moves are expected to cost less than $20 million after taxes.

A few weeks ago, Lehman Brothers announced that it has closed its subprime subsidiary BNC Mortgage amid worsening market conditions.

That closure resulted in 1,200 layoffs at 23 offices nationwide.

Lehman Brothers also owns Aurora Loan Services, an Alt-A wholesale mortgage lender, which in recent weeks has tightened underwriting guidelines significantly to cope with current market woes.

The Regional Operating Center in Gaithersburg, Maryland will be closed as a result.

See more mortgage layoffs.

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