Lehman Brothers lays off more work force, stock down

Lehman Brothers Holdings Inc. (NYSE: LEH), a diversified, global financial services firm, faces more than 5% shares fall after it reported about an additional 1,300 layoffs.

Photo: Lehman Brothers lays off more work force, stock down

A participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking, Lehman Brothers, announced that it will substantially reduce its resources and capacity in the U.S. residential mortgage origination space in light of the dislocation in the mortgage markets. As a result, Lehman Brothers is suspending all Wholesale and Correspondent mortgage originations at Aurora.

Lehman is going to close 3 operational centers in California, Florida, and New Jersey, and take $40 million for severance, technology and facilities costs.

Lehman Brothers' stock has fallen to $55.07, with the day's Range: 54.50 - 58.88.