Bear Stearns cuts 650 jobs

Bear Stearns cuts 650 jobs

US investment bank Bear Stearns is axing 650 positions - about four per cent of its work force - with most cuts rumoured to be at its IT, legal and compliance departments.

According to an AP report - which is based on an internal memo and cites a person familiar with the matter - the bank is cutting jobs in a move to drastically slash costs after incurring mounting losses following the subprime mortgage crisis.

The report says it is thought the cuts would likely come from the operations side of the business - including the bank's IT and legal and compliance divisions.

The memo, which came from the bank's management and compensation committee, said staff affected by the move would be given severance, benefits and outplacement services, says the AP report.

Bear Stearns has already cut back around 900 positions since the summer's credit crunch, including 300 jobs from areas including its equity trading business and around 600 roles at its mortgage origination division.

A separate Reuters report - which cites a source familiar with the situation - says the 650 job losses include 20+ roles in London, both in the front and back office.

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