WaMu to slash 1,600 jobs

Bank cuts payroll in California by 13% after failure and purchase by JPMorgan Chase.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

NEW YORK (CNN) -- Washington Mutual announced Thursday it will eliminate 1,600 jobs in the San Francisco area, a company spokesman said.

Employees will receive their 60-day notice December 1, according to Gary Kishner, a WaMu spokesman.

The layoffs at the company's call centers will include 1,200 from the Pleasanton, California, office and 400 from San Francisco. The work will be shifted to other facilities around the country.

After the layoffs, WaMu will still employ 11,000 people in California, Kishner said.

Washington Mutual collapsed September 29, making it the biggest bank failure in the nation's history. Federal regulators seized the company's banking operations, only to turn around and sell them to JPMorgan Chase (JPM, Fortune 500) for $1.9 billion.

Prior to the collapse, WaMu -- saddled with the debt of toxic home loans -- struggled for months and tried numerous remedies to shore up its problems, including a $7 billion private equity investment and the expulsion of long-time chief executive Kerry Killinger. But fallout in the U.S. mortgage market and waning confidence in the company proved too much for the Seattle-based thrift.

-- CNN's Amanda O'Donnell contributed to this report. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Star Trek technology that we use today With the death of Leonard Nimoy, the actor who played Star Trek's Spock, we remember his character's legacy: The technology we use every day. More
Zombie brands with a second life Where you can still get an Ionic Breeze air freshener. The Sharper Image and five other bankrupt brands still walk among the living, sort of. More
4 trends popping up in high-end kitchens Here's what luxury homeowners are adding to their kitchens. More
Sponsors