JP Morgan to cut 12,000 jobs from acquisition
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US banking giant JP Morgan Chase's takeover of failed Washington Mutual retail bank will lead to cuts of some 12,000 jobs. JP Morgan Chase is hoping these measures will help them save two billion dollars by the end of 2009.
AFP - US banking giant JPMorgan Chase said Thursday it expected 12,000 job cuts as part of its takeover of the failed Washington Mutual retail bank.
The figures came from a chart provided to analysts on its plans to absorb the thrift acquired last September.
According to the chart, JPMorgan Chase will cut "about 12,000 job cuts" from the acquisition.
The job cuts are part of a plan to save two billion dollars, including 1.35 billion in labor costs, by the end of 2009.
JPMorgan purchased Washington Mutual following the biggest-ever US bank failure amid deep troubles of the financial sector triggered by a home mortgage meltdown.
The Seattle-based Washington Mutual was heavily exposed to bad mortgage investments.
JPMorgan bought its deposits, assets and some liabilities for 1.9 billion dollars.
JPMorgan at the time of the merger had about 228,000 employees while Washington Mutual about 43,000 employees in June.