JPMorgan expects to eliminate 12,000 jobs from WaMu integration

February 26, 2009 by · Leave a Comment
Filed under: Industry News 

It was to be expected to see more workforce reduction after this major acquisition purchase.  JPMorgan got an excellent deal in the purchase of Washington Mutual.  They purchased largest base of retail obanking deposit in the country for a fraction.   I have noticed all the marketing is getting slowly changed to the Chase brand.

News:

JPMorgan Chase & Co said it expects to cut 12,000 jobs as it integrates the former Washington Mutual Inc, 2,800 more than its previous estimate.  The second-largest U.S. bank also said on Thursday it expects about $2.75 billion of savings from Washington Mutual, offset by $750 million of new investments. Retail banking chief Charlie Scharf said the bank expects to achieve most of the savings by the end of 2009, sooner than originally thought.

JPMorgan and Scharf discussed the outlook in a presentation to investors. The New York-based lender in September paid $1.9 billion for the banking units of Washington Mutual, the largest U.S. bank or thrift ever to fail. About 9,200 job cuts related to the acquisition had been announced in December.

In the presentation, JPMorgan said it remains well-positioned to weather economic turmoil, though the Washington Mutual acquisition magnified its exposure to U.S. consumers struggling with falling house prices, tight credit, and increasing mortgage and credit card defaults.

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