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Lehman To Cut Severance Pay

10-09-2008

People & Companies in the News

Bankruptcy has eliminated the severance pay for former employees of Lehman Brothers Holdings, Bloomberg News reports.

In a letter to ex-staffers who lost their jobs before the firm filed for bankruptcy Sept. 15, Lehman said it was no longer in a position to honor salary continuation commitments or other payments as outlined in their separation agreements, but will continue to provide health benefits, though without Lehman’s cost contribution.

The letter advised the former staffers that they may seek the balance of their severance by filing a claim with the bankruptcy court handling the Lehman case.

For the complete story, click here.

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