Bear Stearns will cut 310 more mortgage jobs and analysts have warned that more job cuts in the world of investment banking are likely to follow.
The US investment bank has reorganised its mortgage business following the sub-prime crisis and has now cut a total of 540 staff. Morgan Stanley laid off 600 workers while Credit Suisse and Lehaman Brothers have also cut down on staff numbers.
Richard Bove,an analyst at Punk, told MSNBC that Wall Street banks may have to cut up to ten percent of their staff after the falls in revenue from fixed-income business.
Most of the cut backs have centred on the mortgage sector.The bank has now cut 40 percent of its mortgage workers since the start of 2007 and saw earnings plummet by 61 percent in the third quarter.
However, cuts are likely to spread to New York bankers and traders and more layoffs are expected in the near future.