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Wed, Dec 03, 2008 - Page 10 News List

JPMorgan cutting 9,200 jobs at Washington Mutual

AP , NEW YORK AND LONDON

JPMorgan Chase & Co said on Monday it would cut a total of 9,200 jobs at Washington Mutual, which it acquired on Sept. 25 after Washington Mutual became the largest US 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 next month, 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 next year.

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 will 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 last year. As mortgages increasingly defaulted beginning last year, Washington Mutual was forced to set aside billions of dollars to cover losses.

In the UK, investment bank Credit Suisse says it will cut around 10 percent of its British work force, or 650 jobs.

Monika Dunant, a spokeswoman for the Swiss-based investment bank, would not provide more details on Monday or comment on whether there will be job cuts in other countries.

Credit Suisse is Switzerland’s second-largest bank and employs more than 48,500 people in more than countries. In Britain, Credit Suisse has offices in the cities of London, Birmingham and Manchester.

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