JPMorgan to trim workforce at WaMu

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New York: JPMorgan Chase is planning to slash nearly 21 % of workforce and lay off 4,000 employees by January at Washington Mutual, which was acquired by the investment banking major in September.

The reduction of 21% of WaMu employees is expected by 2009. "JP Morgan Chase & Co announced plans to lay off about 21 per cent of Washington Mutual Inc's employees by the end of 2009, as it weaves the thrift's operations into its retail-banking network," the Wall Street Journal reported on Tuesday.

Quoting JPMorgan spokesman Tom Kelly, the publication said, "JPMorgan, which acquired WaMu in September for USD 1.9 billion after it was seized by the government, told employees that it will lay off 4,000 workers by the end of January." Another 5,200 people are being asked to stay on through various dates in 2009 to help with the deal's integration, the report added.

WaMu, which was one of the biggest financial institutions to collapse in the ongoing economic turmoil, had a total workforce of 43,198.

"JPMorgan Chief Executive Officer James Dimon and Charles Scharf, who runs the bank's retail operations, met employees and local officials in Seattle on Monday," the publication noted.

The report said that many of the layoffs come from WaMu's home town of Seattle and two operations centres in California. Some 1,500 workers in Seattle received notice on Monday that they would be laid off in 60 days, it added.