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Chase may lay off 5,000
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November 30, 2000: 12:20 a.m. ET
Bank reportedly lifting job cuts from 3,000 in merger with J.P. Morgan
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NEW YORK (CNNfn) - Chase Manhattan Corp., moving to complete its $33 billion merger with J.P. Morgan & Co., has quietly raised the number of people it expects to lay off to 5,000 from 3,000, according to a published report.
The Wall Street Journal's Web site reported Thursday that Chase (CMB: Research, Estimates) officials have found more areas of overlap than originally anticipated in what will be renamed J.P. Morgan Chase & Co., and will thus cut more jobs.
People familiar with the matter say Chase may close on the merger before the end of the year, earlier than the originally scheduled, the story said. Spokesmen declined to comment.
Chase has already told hundreds of employees that they have lost their jobs, and more announcements are expected as early as Thursday, the story said. The bank intends to complete the layoffs before the anticipated year-end close, it added.
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The 5,000 anticipated job cuts, though higher than expected, still amount to roughly 5.2 percent of the total 95,000 employees in Chase. The total is far fewer than the 10,000 cuts that many on Wall Street had anticipated.
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The 5,000 anticipated job cuts, though higher than expected, still amount to roughly 5.2 percent of the total 95,000 employees in Chase. The total is far fewer than the 10,000 cuts that many on Wall Street had anticipated, the Journal reported.
Chase plans to save $500 million through job cuts, $500 million by consolidating the processing systems of Chase and Morgan (JPM: Research, Estimates), and $500 million by selling off excess real estate, the story said.
Chase has already won the approval of the Securities and Exchange Commission and the Justice Department. The only major step left is to
get the approval of shareholders and that is expected to happen soon, the story said. 
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