New York-based Bear Stearns Cos. will cut 650 jobs globally – or approximately 4% of its workforce – according to published reports.
Less than a month after announcing a strategic agreement with China's largest listed securities company, the largest underwriter of U.S. mortgage bonds announced the job cuts in an internal memo obtained by the Associated Press (AP). Bear Stearns made significant cuts to its mortgage origination unit as well as to other branches of the company following the credit market's downturn in the summer. The company announced earlier this month that it would write down $1.2 billion of mortgage-related assets in the fourth quarter.
Job cuts will occur across the firm, according a spokesperson cited in the AP report, and the memo says that those who lose jobs will be given severance, benefits and outplacement services.
