The Daily Telegraph reports that Lehman Brothers fired 20% of its investment bankers in Europe last week. Around 80 bankers have gone, mainly in London, and the cull includes a small number of managing directors.
The move follows a restructure in investment banking as the firm has now created two new groups. Spokesman Stewart Prosser said:' The first is of senior relationship bankers, who will face the clients, the second is corporate finance merger and acquisitions, who will handle the execution of deals'.
You know things are bad when Lehman starts to cut. The Wall Street firm has a well-earned reputation for refusing to panic and is known to do all it can before resorting to headcount reductions. 60 junior investment bankers went in May and around 100 staff, mainly in fixed income, are thought to have lost their jobs in August.