New York, Feb 27: The second largest US bank, JP Morgan Chase & Co said on Thursday, Feb 26 that it will be cutting up to 14,000 jobs, more than previously disclosed. Reason: To reduce costs due to global recession and higher credit losses.
The bank disclosed that it would layoff as many as 12,000 jobs from the integrating the former Washington Mutual Inc. In December 2008, it had announced that it would slash 9,200. Apart from this it also expects to cut up to 2,000 investment banking jobs.
It expects the cost cuts to help it weather the current economic turmoil, as customers struggle with falling house prices, tight credit and increasing mortgage and credit card defaults.
“We are scared about the future like everybody else," but the bank has 'enormous earnings power,' Chief Executive Jamie Dimon said. “I always remind myself that we really have no idea what 2009 is going to look like, but we"re going to make an awful lot of money in 2011."