Fuld’s Master Plan Includes 1,500 Layoffs at Lehman

Is Dick Fuld on the verge of pulling a rabbit out of his hat? Bloomberg inadvertently released Steve Jobs obituary and many other media outlets and bloggers have been busy writing Fuld's as well. His firm might not get a clean bill of health any time soon, but they continue to move in the right direction while taking their medicine.

The Times is reporting that an additional 1,500 Lehman employees are on the verge of being laid off. It is probably not that big of a surprise, but combine it with a sale of Neuberger, a capital infusion (perhaps convertible or preferred stock from sovereign wealth funds) and the removal of toxic assets from the balance sheet, and Lehman Brothers (LEH-NYSE) might finally begin to see light at the end of the tunnel.

Lehman Brothers, the ailing Wall Street bank, plans to lay off as many as 1,500 employees, or nearly 6 percent of its work force, before it announces third-quarter results on Sept. 15, a person briefed on the plans said Thursday. NYT

Don't count him out just yet, folks. But it is all coming to a head as we approach Lehman's third quarter earnings release. Perhaps soon Fuld will only have to deal with one problem...the fact that there is no business to be had.

Struggling Lehman Plans to Lay Off 1,500
NYT

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