Lehman Brothers said this morning that it has eliminated 850 positions in the U.S. and UK amid a restructuring of its mortgage business, a move that the investment bank said "sizes the business appropriately for the current market environment." The company also said it is closing its Korean mortgage business. No details were given on what percentage of the 850 cuts were centered in the company's US-based operations. The company also said that its residential mortgage origination and servicing businesses in the U.S., Japan and Europe -- including Aurora Loan Services, Libertus and ELQ Hypotheken -- will now operate under the name Lehman Mortgage Capital. From today's press statement:
“While these moves are extraordinarily difficult because of the impact they have on our people, we now have a business that is sized correctly for the current environment and positioned for long-term success,'' said Ted Janulis, global head of Mortgage Capital for Lehman Brothers. “In addition, we will continue to look at other origination opportunities in global markets."
Lehman announced last month that it would close subprime outfit BNC Mortgage amid unabating troubles in the subprime mortgage market, a move that trimmed 1,200 jobs.