Lehman Brothers Holdings Inc is laying off nearly 5 percent of its workers worldwide as a response to recent write-downs due to the sub-prime mortgage crisis and ensuing global credit crunch, according to news reports released Tuesday.
The latest job slashes follow news over the weekend that Lehman Brothers was planning to slash 5 percent of its 28,000 employees around the world, Reuters said, citing a person briefed on the matter.
Lehman sources said the group was re-sizing to suit the current market conditions.
A range of other Wall Street firms have been cutting jobs as business slowed in various areas, including investment banking, residential mortgages and asset-backed securities.
Shares of the investment bank fell 79 cents, or 1.9 percent, to $42 in New York Stock Exchange composite trading. The stock has dropped 33 percent this year.