JP Morgan May Lay-off 4,000 Employees

JP Morgan could cut up to 4,000 jobs as a result of their takeover of Bear Stearns and the continuing mess in the financial markets. About half of those jobs will be replaced by Bear Stearns employees. The other half could be let go as part of a broader cost-cutting measure to ensure adequate liquidity for the company to make it through the market turmoil.

From Private Equity HUB:

NEW YORK (Reuters) - JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) could cut as many as 4,000 of its own employees worldwide as the bank prepares to take on staff from Bear Stearns Cos (BSC.N: Quote, Profile, Research) at the same time it deals with turmoil in financial markets, people familiar with the situation said on Tuesday.

In addition to roughly 2,000 JPMorgan employees who will be replaced by counterparts acquired through its takeover of Bear Stearns, the sources said that an additional 1,000 to 2,000 JPMorgan employees may lose their jobs because of the slowdown in investment banking activity and credit market crisis.

Final decisions dealing with specific employees have not been made, though JPMorgan is expected to decide on market-related cuts by early June, the sources said.

JP Morgan picked up Bear Stearns with a guarantee from the federal government on up to $29 billion in questionable mortgage-backed assets and then led a somewhat clandestine effort to raise $6 billion in capital to maintain adequate liquidity levels.

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