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Bear Stearns lays off 400
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March 6, 2001: 5:50 p.m. ET
Wall Street firm cuts 400 positions, CSFB to announce bank cuts
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NEW YORK (CNNfn) - Bear Stearns Cos. Inc. confirmed Tuesday that it has laid off 400 employees, or more than 3 percent of its work force, as part of its restructuring effort.
The job cuts are spread across the firm's business units but many came from Bear's information technology group, where 120 jobs were cut due to the closing of the firm's IT development center in Tampa, Fla.
New York-based Bear Stearns (BSC: Research, Estimates) employs about 11,000 employees globally. In December, the firm laid off 63 people from the IT group.
The Wall Street firm may also have a problem hitting its earnings target for the first quarter, ended in February. Earnings tracker First Call expects Bear Stearns to earn $1.38 for the quarter.
The firm will be taking a second-quarter charge of $8 million for severance-related costs, a spokesman said.
"The job cuts have nothing to do with the economic climate," a source said. "This is part of an ongoing effort and initiative to restructure work force."
However, it is not known whether there will be more layoffs.
CSFB to make bank cuts?
CSFB, the banking unit of Credit Suisse Group, will lay off staffers from its investment banking division and an announcement could come as soon as Wednesday, press reports said.
CSFB plans to cut about 300 employees, with about 120 coming from London, the Wall Street Journal's interactive edition said.
CSFB declined to comment.
The layoffs are CSFB's latest attempt to trim staff following its $11.5 billion acquisition last August of Donaldson Lufkin & Jenrette. In January, CNNfn.com reported that CSFB was planning to make cuts to the investment banking division.
CSFB has said it would trim 10 percent of staff as part of its acquisition of DLJ. The firm has already cut its fixed income and equities division and is not focusing on investment banking, a person familiar with the situation told CNNfn.com.
"Investment banking takes longer," the source said.
The job cuts come as CSFB is losing many high-profile employees. In December, 20 CSFB senior bankers jumped to UBS Warburg. The Swiss banking unit also lost Kenneth Moelis, the former co-head of U.S. investment banking at Credit Suisse, who joined UBS, where he will be managing director and co-head of U.S. investment banking.
Shares for Bear Stearns rose by $1.54 to close at $54.69 Tuesday. 
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