BUSINESS

Barclays To Cut 3,000 Jobs After Lehman Deal

LONDON (Fortune) -- Barclays PLC will cut about 3,000 jobs in the aftermath of its purchase of bankrupt Lehman Brothers' North American investment banking and capital markets businesses, Fortune has learned.

In September, the third-largest British bank acquired Lehman operations that include fixed income and equities sales, trading, and research and investment banking. About 10,000 employees worked in those groups at Lehman, which is now part of a unit known as Barclays Capital.

Barclays (BCS) president Bob Diamond has been spending much of his time in New York overseeing the integration of the Lehman shop into his own investment banking and trading groups. He hopes to have the operation wrapped up by year's end, including the elimination of the staff positions. Diamond confirmed the headcount reduction to Fortune.

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