Lehman Brothers is to make 500 staff redundant - but its European investment banking division is likely to be spared further job cuts.

Lehman, which until now has resisted wholesale job cuts in the continued market downturn, is to make cuts across its main business areas including equities, fixed income and investment banking. Meanwhile Cazenove has been forced to axe 90 jobs, or around 8% of staff, across the privately-owned UK bank's stockbroking, fund management and investment banking operations.