Bear Stearns to sack 650 staff

29 November 2007

Investment banking firm Bear Stearns has announced that it will have to make 650 workers redundant, after expecting to lose more money on the sub-prime mortgage crisis.

The firm will cut a further four per cent of its work force, after already shedding 1,490 staff since August.

These latest cuts will affect employees across the globe, including workers in New York and London.

Bear Stearn's fourth quarter results reveal a $1.2 billion writedown directly due to sub-prime losses, while the bank was $563 million profit for the same period last year.

Reuters predicts that the firm will lose $1.36 per share in the final quarter - the equivalent of $200 million.

Bear Stearn has not had a good year, with shares down 39 per cent and the collapse of two hedge funds in the summer, which secured the departure of co-president Warren Spector.

"As we indicated at the end of October, we are continuing to rationalize our business, monitor staffing needs and align our infrastructure with current market conditions," the bank said in a statement.

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