JPMorgan to cut 12,000 jobs as it begins WaMu integration

JPMorgan to cut 12,000 jobs as it begins WaMu integration

JPMorgan Chase is to eliminate 12,000 jobs as it integrates the retail banking operations of failed Seattle-based thrift Washington Mutual.

The scale of the cuts was announced at a presentation to investors.

The US bank is targetting net savings of $2 billion by the end of the year, including $1.3 billion from employee reductions and $1.4 billion in marketing, technology and real estate spending. An additional $750 million will be re-invested in the combined business to bump up sales, facilities and marketing.

JPMorgan says it will close 300 branches by the end of the first quarter and a further 92 between the third and fourth quarter.

The bank has also given further details of its two-year technology integration plan. The IT element will entail 672 technology conversions, three data centre conversions representing 4200 servers, and the introduction of 31,800 new workstations in branches.

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