JPMorgan could be the next bank to unveil a large-scale layoff, and it won't be confined to employees of the newly acquired Bear Stearns, a published report said.
Citing unnamed sources, Reuters reported Wednesday that absorbing Bear Stearns will displace some 2,000 current JPMorgan employees. What's more, market-driven cutbacks could claim an additional 1,000 to 2,000 JPMorgan jobs in coming weeks, Reuters said.
Both the merger-related and market-related cuts are expected to be finalized by early June, around the same time that JPMorgan expects to complete the takeover of Bear. The merger will raise JPMorgan's worldwide headcount by a net 4,000 to 184,000, sources told Reuters.
Earlier this week, the newswire reported that up to 6,000 of Bear's 14,000 employees had been offered jobs at JPMorgan. Among that complement, "a little more than half" reportedly work in areas that don't overlap with the bank's current businesses - areas such as prime brokerage, clearing, energy trading and some investment banking coverage. The other 2,500 to 2,700 work in support departments such as operations and finance. These individuals will end up displacing roughly 2,000 current JPMorgan staffers, the story says. At the same time, the bank is said to be moving to eliminate an additional 1,000 to 2,000 slots due to reduced investment banking activity and disruptions in credit markets.