JPMorgan to cut 12,000 jobs as it begins WaMu integration

JPMorgan Chase is to eliminate 12,000 jobs as it integrates the retail banking operations of failed Seattle-based thrift Washington Mutual.

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JPMorgan to cut 12,000 jobs as it begins WaMu integration

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The scale of the cuts was announced at a presentation to investors.

The US bank is targetting net savings of $2 billion by the end of the year, including $1.3 billion from employee reductions and $1.4 billion in marketing, technology and real estate spending. An additional $750 million will be re-invested in the combined business to bump up sales, facilities and marketing.

JPMorgan says it will close 300 branches by the end of the first quarter and a further 92 between the third and fourth quarter.

The bank has also given further details of its two-year technology integration plan. The IT element will entail 672 technology conversions, three data centre conversions representing 4200 servers, and the introduction of 31,800 new workstations in branches.

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