JP set to cut acquired jobs
(1 December 2008 – USA) JPMorgan has announced that it will cut nearly 10,000 jobs of acquired bank, Washington Mutual, by the end of 2009.
JPMorgan Chase & Co said that it would cut 9,200 jobs of the bank which became one of the largest victims of the credit crunch when it was closed and subsequently taken over on the 25th of September.
Washington Mutual had around 42,000 employees nationwide when JPMorgan took over the bank, making a reduction of over 20 percent of the workforce.
As part of the Washington Mutual integration into JPMorgan, 4,000 jobs 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 October 1 until their last day on the job, and be entitled to severance packages, the spokesman said.
In September, Washington Mutual was closed by the US Government and promptly purchased by JPMorgan for US$1.9 billion.
JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC).
Washington Mutual had around 42,000 employees nationwide when JPMorgan took over the bank, making a reduction of over 20 percent of the workforce.
As part of the Washington Mutual integration into JPMorgan, 4,000 jobs 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 October 1 until their last day on the job, and be entitled to severance packages, the spokesman said.
In September, Washington Mutual was closed by the US Government and promptly purchased by JPMorgan for US$1.9 billion.
JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC).
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