(January 18) – “The Wall Street firm that has capitalized the most on the boom in underwriting shares of high-tech companies may soon be cutting back,” writes Charles Gasparino in today’s Wall Street Journal.

“Credit Suisse Group’s Credit Suisse First Boston unit, one of the leading firms in bringing to market the initial public offerings of technology stocks, may cut as many as 280 investment bankers, or 10% of its investment-banking work force, people close to the company said.”

“As part of the cuts, the firm’s highflying technology group led by banking superstar Frank Quattrone could also feel the pinch, these people say. The group, which employs nearly 400 professionals, could face cuts, these people say.”

“A spokeswoman for Credit Suisse First Boston declined to comment about the matter. A spokeswoman for Mr. Quattrone said ‘absolutely no decision has been made yet’ about possible cuts.”

“In recent weeks, firms such as Merrill Lynch & Co., Charles Schwab Corp., Bear Stearns Cos. and Prudential Securities, a unit of Prudential Insurance Co. of America, each have announced dozens of job cuts and/or cost reductions as the stock market has sputtered, forcing many IPOs to be put on hold or pulled. Firms such as Goldman Sachs Group Inc. and Morgan Stanley Dean Witter have begun to rethink hiring plans and selectively reduce their work force amid the profit drought, people close to the firms say.”

“The culprit: a falling stock market and declines in several once-profitable lines of business, such as high yield, or ‘junk’, bonds; telecommunications financings; and Internet IPOs.”