JP Morgan Cut 3000 jobs, Freeze Salaries of Employees
JPMorgan Chase, the largest U.S. bank, plans to fire about 10 percent of its investment banking staff, or about 3,000 people, as the global economy slides into reces sion. Geoff Boisi, co-chief executive of JPMorgan Chase’s investment banking division, delivered the news to his staff by leaving them a detailed recorded voicemail message.The job cuts, which would be across all levels and regions, will be completed by as early as the end of this year. According to reports, Morgan is planning to slash 10 per cent of its banking staff. After Citigroup 53,000 job cuts, its another shocking news for Job aspirants and market as well.
There are also reports that JP Morgan will freeze salaries next year for most employees who earn more than $60,000 to $70,000. These job cuts at JP Morgan are in line with other investment banking giants such as Goldman Sachs Group etc.
After the announcement Its shares were down 12 percent at $25.01 in afternoon trade on the New York Stock Exchange after falling as low as $23.21 earlier in the session. The bank is beginning to see customers miss payments on some of its $250 billion of prime mortgages and home equity loans. It has announced a plan to renegotiate $70 billion of mortgages over the next two years to help those customers.
The company’s investment bank has just under 31,000 employees, up 20 percent f
rom a year earlier, according to a third-quarter regulatory filing.JPMorgan took on about 6,000 staff from nearly insolvent Bear Stearns Cos in March and has also added about 40,000 staff through its acquisition of failed thrift Washington Mutual Inc, according to its third-quarter earnings statement.
The bank’s total head count was 228,452 at the end of September.
The growing spectre of economic doom and gloom has started haunted governments both in India and worldwide and at the moment reduction in workforce remain the biggest worry.
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