Media reports says that JP Morgan retrenchment scale is comparable to its competitors. According to Citi and Goldman Sachs 10% retrenchment ratio projection, JP Morgan may retrench about 3000 people.
In the report, JP Morgan's retrenchment exercise may start next year January. JP Morgan in July expressed that it plans to retrench at most 10% of its staff in its Europe's investment banking unit.
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21 November 2008
The Straits Times
Nov 21, 2008 |
JPMorgan to retrench staff
NEW YORK - JPMORGAN Chase & Co. is shedding about 10 per cent of its investment bank staff in an effort to better weather the global economic slowdown.
The New York-based banking giant is making cuts that are likely to be in line with its competitors Goldman Sachs Group Inc and Morgan Stanley, said a person familiar with the matter on Thursday.
The person spoke on condition of anonymity because the cuts have not been publicly announced.
JPMorgan's shares fell dropped $5.09, or 18 per cent, to close at $23.38, and earlier reached $22.32 - their lowest point since 2003.
As of the end of the third quarter, JPMorgan's investment bank employed about 31,000 people. That includes the roughly 7,000 employees added to the roster when the bank acquired Bear Stearns Cos in March.
The cuts will be across all levels and all regions globally, the source told The Associated Press, and will be made through the end of the year.
JPMorgan is following in the footsteps of its competitors, who are slashing workers from their payrolls by the thousands amid market turmoil and the ongoing credit crunch.
Investment bank Goldman Sachs Group Inc. is cutting about 10 per cent of its work force, and Morgan Stanley outlined plans last week to also cut 10 per cent of staff in its institutional securities group - its biggest business that covers everything from investment banking to stock trading.
The layoffs follow a 10 per cent cut made earlier this year in the same group. Morgan Stanley also plans to restructure its money management business by cutting 9 percent of its staff.
Meanwhile, Citigroup Inc. announced plans earlier this week to shed about 53,000 more employees in the coming quarters.
The New York-based bank, which has already reduced its assets by about 20 per cent since the first quarter of the year, also plans to trim expenses by 19 per cent in 2009 from third-quarter levels, to $50 billion.
JPMorgan has already been eliminating some jobs due to big profit hits from the financial crisis, and redundancies following the buyouts of Bear Stearns and failed thrift Washington Mutual Inc. -- AP
1 December 2008
Yahoo Finance
AP
JPMorgan cutting 9,200 jobs at Washington Mutual
Monday December 1, 7:10 pm ET
By Stephen Bernard, AP Business Writer
JPMorgan Chase cutting 9,200 jobs at recently acquired Washington Mutual by end of 2009
NEW YORK (AP) -- JPMorgan Chase & Co. said Monday it will cut a total of 9,200 jobs at Washington Mutual, which it acquired Sept. 25 after Washington Mutual became the nation's largest bank to fail amid the ongoing credit crisis.Of the 9,200 jobs being eliminated as JPMorgan integrates Washington Mutual, 4,000 will be cut by the end of January, a JPMorgan spokesman said. The remaining 5,200 employees will remain with JPMorgan through a transition period, but will lose their positions by the end of 2009.
Those 5,200 employees who stay on as transition workers will receive double their salary retroactive to Oct. 1 until their last day on the job, and be entitled to severance packages, the spokesman said.
Washington Mutual had between 41,500 and 42,000 employees nationwide when JPMorgan took over the bank at the end of September.
JPMorgan acquired most of Washington Mutual's assets from federal regulators in September after the Seattle-based bank failed amid the ongoing credit crisis that saw other banks struggle as well, such as Lehman Brothers Holdings Inc., which filed for bankruptcy protection, and Wachovia Corp., which agreed to be sold to Wells Fargo & Co.
Washington Mutual was weighed down by its deep exposure to the crumbling mortgage market, which has been the hardest hit area of the markets since the middle of 2007. As mortgages increasingly defaulted beginning in 2007, Washington Mutual was forced to set aside billions of dollars to cover losses.
Shares of JPMorgan fell $5.54, or 17.5 percent, to $26.12 in Monday trading as the broader market tumbled as investors continue to worry about the sagging economy.
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