J.P. Morgan plans more job cuts (2000 additional jobs gone)

[UpInArms]

http://www.delawareonline.com/newsjournal/business/2004/07/22jpmorganplansmo.html

J.P. Morgan Chase & Co. said Wednesday it plans to cut an additional 2,000 jobs in the United States but will not cut more jobs in Delaware than previously announced.

Following J.P. Morgan's merger with Bank One Corp., the company said it would eliminate 600 jobs in Delaware, where its credit card operations are based. Those cuts are expected to take place over the next six months. The announcement Wednesday does not change the outlook for Delaware, spokeswoman Juliette Ballak said.

J.P. Morgan Chase also reported a second-quarter loss Wednesday, largely because of a $2.3 billion litigation-related charge. Excluding one-time charges, profit was above Wall Street analysts' expectations.

Dina Dublon, J.P. Morgan Chase's chief financial officer, said in a conference call that the company is increasing to 12,000 from 10,000 the total number of jobs expected to be eliminated in connection with the merger. J.P. Morgan Chase, a diversified financial giant with more than $1 trillion in assets and about 140,000 U.S. employees, also upped its target for merger-related savings from $2.2 billion to $3 billion, with the cost cuts expected to be phased in over three years.

...more...

and then, if that wasn't enough:

http://www.mysanantonio.com/business/stories/MYSA072204.1A.washingtonmutual.11f70644.html

Layoffs coming for Washington Mutual

Washington Mutual, a Seattle-based financial services company, on Wednesday announced it is shutting down its San Antonio mortgage lending operations.

Most of the 660 people working in the Washington Mutual building on U.S. 281 will lose their positions by the end of the year, company spokesman Adrian Rodriguez said.

Some of those jobs will be moved to similar operation centers in Milwaukee, Wis., or Jacksonville, Fla. A dozen information technology positions will remain intact and will be moved to another San Antonio location.

"We are trying to streamline all of our back office operations in an effort to increase our efficiency," Rodriguez said. "We have a higher concentration of these jobs in Jacksonville and Milwaukee."

He said the company has been consolidating operations since the beginning of the year. Consolidation generally has two primary goals: increasing profitability by cutting costs and increasing worker productivity by eliminating duplicated positions.

...more...

I guess ole' Meanspin really whipped corporate amerika into a hiring and spending frenzy yesterday!

[ixion]

1. funny how you only hear about thousands of job cuts, and not hiring...

in this supposedly booming jobless economy. :eyes:

[Judi Lynn]

3. Can't remember EVER hearing of one yet, since we were bagged by Bush.n/t

[maddezmom]

2. Mitsubishi to Lay Off 1,200 Ill. Workers

http://story.news.yahoo.com/news?tmpl=story&cid=530&ncid=530&e=10&u=/ap/20040722/ap_on_bi_ge/mitsubishi_illinois

[maddezmom]

5. Cap One losing 1100 in Tampa

http://www.sptimes.com/2004/07/22/Business/Capitol_One_ends_1_10.shtml

[hatrack]

4. Yes, but Alan Greenspan says it's all our fault - we're not SKILLED enough

Gee, Alan, what skills would you recommend we train for? Financial services? Oops - guess not! Insurance specialist? Oops - guess not! Perhaps high-tech manufacturing? Oops - guess not!

[Zynx]

6. My father works for Bank One(now part of Morgan) and says it is terrible.

He's trying to find a way to leave as fast as possible. Mega-mergers never help anyone except the ultra-rich, but even with them their stock prices tend to languish after a merger is completed.

[Frodo]

7. Don't "find a way to leave"! Wait for them to lay you off!

Especially if he's been with the bank for awhile, the severance in these deals can add up to months of income (sometimes in a lump sum). Even if he finds another job right after the merger.

There are also usually "pay tp stay" programs where (if his job is important enough) they bribe you to stay on through the settlement date (in addition to any severance).

It's almost always worth the time lost looking for something else. And it gives him a few months before the layoff to get up to speed on resumes and job interviews, etc.


Time it right an he could be on double salary for quite some time. I have quite a few friend who have been through it and I've been on the acquisition side of the table on several occasions. Jumping ship too early is almost always a mistake!

[mbperrin]

8. Man, that * job machine is humming!

Go, jobs, go! OOOOOps, there they go!

[UpInArms]

9. Update with article: Washington Mutual cutting 2,500

http://money.cnn.com/2004/07/22/news/wamu_cuts.reut/

NEW YORK (Reuters) - Washington Mutual Inc., the largest U.S. savings and loan, will cut an additional 2,500 jobs this year on top of 7,700 previously announced layoffs, a spokesman said Thursday.

The job cuts are part of the company's effort to improve profitability in its mortgage lending business as interest rates rise and demand for home loan refinancings declines.

...a bit more at link...