Morgan Stanley, Lehman Brothers Holdings, Inc. and Credit Suisse Group are cutting over 1,640 jobs, according to people familiar with the matter, Bloomberg reported.
The job cuts come as the banking industry trims its size following a downturn in the U.S. housing market, triggered by defaults in home loans to clients with poor credit.
Morgan Stanley's reductions will affect about 1,000 employees in its asset management, retail brokerage and areas such as technology and administration, the report stated. The cuts won't touch the companies' institutional securities division, which includes trading and investment banking.
Lehman's cuts of 140 jobs will take place in fixed-income division taking place in structured finance, commercial real estate, securitization, and trading in mortgages and collateralized debt obligations.
Meanwhile, Credit Suisse announced today that it is cutting 500 investment banking positions in its investment banking division of 20,300 employees, mostly in equities and fixed-income divisions, the report stated.