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Report: Cerberus to cut 10% of staff

The New York-based private equity firm is reportedly on the brink of making up to 27 of its 275 employees redundant.

US private equity firm Cerberus Capital Management is reportedly planning to cut 10 percent of its staff across its offices worldwide.

The firm employs approximately 275 staff members in affiliate or advisory offices in Atlanta, Chicago, Los Angeles, London, Baarn, Frankfurt, Hong Kong, Tokyo, Beijing, Osaka, Taipei and Dubai. Cerberus' aggregated portfolio investments generate more than $100 billion annually, according to the firm's website.

A Cerberus spokesperson told the Wall Street Journal that the company was reviewing a number of options during the challenging economic climate. “Any action we take will of course be consistent with the best interests of our investors,” the spokesperson said.

Cerberus last month agreed to turn over its equity in Chrysler's automotive operations as part of the $17.4 billion rescue package approved by the US government to keep car manufacturers General Motors and Chrysler afloat. The firm also agreed to donate the first $2 billion in proceeds from its financing arm, Chrysler Financial, to help backstop the government relief money.

If the redundancy plans are confirmed Cerberus will join a growing number of private equity firms announcing job cuts in recent weeks. The headcount includes US-based Cognetas, which cut 12 percent of its workforce; UK private equity giant The Blackstone Group made 5 percent of staff redundant; Shuua Capital's Dubai office saw 9 percent of its workforce culled; Bahrain-headquartered Investcorp shed 20 percent of its staff; and UK-based 3i announced plans to cull 15 percent of its back office staff.