Drexel to Cut Back L.A. ‘Junk-Bond’ Operations by 10%

Drexel Burnham Lambert Inc., the company that revolutionized the use of high-yield, high-risk bonds for corporate takeovers, says it is cutting about 10% of its “junk bond” operations staff in Los Angeles.

A New York spokesman for Drexel, Steve Anreder, said staff reductions will also be made in the corporate finance department in Los Angeles as part of Drexel’s long-term plan to reorganize its operations.

Anreder said about 50 employees will be cut this week, including about 35 to 40 workers in the junk-bond department.