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J.P. Morgan to cut staff
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February 24, 1998: 7:04 a.m. ET
700 positions eliminated as costs, Asia seen cutting into profits, report says
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NEW YORK (CNNfn) - In the wake of mounting losses in Asia and higher operating costs, J.P. Morgan & Co. reportedly plans to fire about 700 employees.
The layoffs represent about 5 percent of its worldwide work force and will begin immediately, the company confirmed Tuesday.
J.P. Morgan becomes the third major bank during the past few months to cut its staffing. Chase Manhattan Corp. is in the midst of eliminating about 3,000 jobs, or 4.3 percent of its staff, while Citicorp late last year said it would eliminate about 7,500 jobs, or 8.3 percent.
For Morgan, the anticipated move underscores one of its biggest problems. In its attempts to transform itself from being a stodgy lender to a major securities firm, J.P. Morgan's growth of operating expenses has outstripped the growth of revenue in three of the past four years.
The layoffs will not be concentrated in any one area and will affect workers from the clerical level to managing directors. The cuts are likely to result in a one-time charge in the first quarter for severance-related issues.
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J.P. Morgan
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