Lehman Could Lay Off 1,500, Report Says

Lehman Brothers (LEH Quote) will announce plans to cut 1,500 employees, or roughly 6% of its workforce, next month, the New York Times reported Thursday.

The layoffs could be announced right before the struggling investment bank reports third-quarter earnings in mid-September, the Times says. The article did not state which business units would be affected.

Following the sale of Bear Stearns to JPMorgan Chase (JPM Quote), investor and the media attention have fretted that Lehman could be the next Wall Street bank to suffer a similar fate. Of the brokers, Lehman was the most exposed to the residential mortgage market.

Speculation has recently run rampant about whether Lehman is looking to raise capital -- either by selling its profitable asset management arm, Neuberger Berman, or through an infusion. Reports have surfaced that the firm was in negotiations with Korean Development Bank, but no definite deal has so far been announced.

A spokesman for Lehman declined to comment regarding the layoffs. Shares were up nearly 6.3% in recent trading on Thursday.