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 merger.

The spokesman told FN: “We ultimately don’t 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 last year.

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.