JP Morgan (JPM) may end up axing 4,000 of its own staff in order to integrate defunct investment bank Bear Stearns, according to a Bloomberg source. Up to half of the redundancies will be a result of Bear Stearns (BSC) employees taking over from JP Morgan staff with the same or similar jobs. The decision has yet to be finalised. Bloomberg:
Chief Executive Officer Jamie Dimon said at a May 12 conference that JPMorgan found spots for 6,000 of Bear Stearns’s 14,000 employees. He also told investors that fees from investment banking would be lower in the second quarter.
The integration of Bear Stearns was “proceeding well,” Dimon said, though he urged analysts to wait a year before judging whether the deal was a success. Once the fifth-biggest U.S. securities firm, Bear Stearns was forced to agree to the takeover on March 16 after customers and lenders fled because of speculation that the company faced a cash shortage.
The merger is expected to be complete around June 1. The cuts were first reporting by Reuters.