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Pru Securities to make cuts
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December 7, 2000: 6:33 p.m. ET
Investment bank to make job cuts; Bear Stearns lays off 63 in IT dep't.
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NEW YORK (CNNfn) - Prudential Securities, having struggled to keep up with its larger rivals on Wall Street, is considering making cuts to its investment banking division, a person familiar with the situation told CNNfn.com.
New York-based Prudential Securities, a unit of Prudential Insurance Co. of America, employs about 250 investment bankers.
The layoffs come as the banking unit is trying to focus more on retail brokerage. Prudential Securities has failed to keep up with top-tier underwriters such as Goldman Sachs and Merrill Lynch.
Prudential Securities is ranked 15th among debt and equities underwriters and is responsible for $16.5 billion in underwritings in the past several years, according to Thomson Financial Securities Data.
Prudential Securities could not be reached for comment while parent Prudential Insurance Co. declined to comment.
In November, CNNfn.com reported that Prudential Securities was considering various options, along with shutting down its investment banking unit, to transform itself.
On Nov 1, Prudential shut down its institutional fixed-income business, closing its municipal finance activities and asset-backed securities business. The reorganization led to the firing or layoff of 400 traders and institutional sales representatives.
Bear Stearns cuts 63 from IT
Bear Stearns also confirmed that it would be cutting nearly 3 percent, or 63 people, from its information technology department which employs 2,200 persons.
The cuts are part of a reorganization of the IT department, a company source said.
"To have 11,000 employees and 2,200 doing computer related things is a lot," the source said. 
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