Kidder May Lay Off 560 Workers, Journal Reports

Kidder, Peabody Group Inc. may lay off up to 10% of its 5,600 employees to cut costs, a newspaper reported Monday.

The company denied that sizable layoffs were in the works, however.

Peabody Group’s investment banking division, with about 400 employees, may be one of the job-reduction targets, sources told the Wall Street Journal.

Investment banking has been hit hard by a decline in merger and acquisition activity on Wall Street.

A spokeswoman said Kidder is not planning widespread layoffs.

“Along with every firm on Wall Street, we’re looking at ways to reduce costs,” she said. “There may be some further routine streamlining throughout the year.”