Job cuts at Bear Stearns could exceed 10,000, bankers told
Financial News. JP Morgan has begun writing to staff
at the failed investment bank to inform them whether they have
a new role or will be made redundant.
Sources close to the situation to FN, more than 70%
of Bear Stearns 14,000 employees will lose their jobs in the
next months as the bank begins the process of merging it with
its own investment banking business.
As many as 1,500 JP Morgan staff could also lose their jobs
as a result of the integration, according to one source, but
the precise figure has yet to be decided.
A New York-based spokesman for JP Morgan said it was too
early to say how many jobs would be lost as a result of the
The spokesman told FN: We ultimately
dont know what the impact on jobs will be yet.
Bear Stearns staff made redundant will receive nine months
full pay and a cash payment equal to one-third of their bonus
According to one headhunter, many staff at Bear Stearns are
already getting attractive offers from rivals, who are offering
them a guarantee of their compensation last year to join.
JP Morgan is this week expected to announce internally the
senior management team to run the combined European business,
according to a senior banker at Bear Stearns.
Last Friday, JP Morgan said it had hired 30 senior managing
directors from Bear Stearns.
However, the majority of employees at the bank have not
heard whether they have a job or not.