J.P. Morgan To Cut Investment Banking Jobs

November 20, 2008 8:15 p.m. EST

New York, NY (AHN) - JP Morgan Chase & Co will cut 10 percent of its investment banking staff, roughly 3,000 jobs, according to recent reports citing an anonymous source.

The cuts are expected to be complete by the end of 2008 and follow suit with such cuts made by rival Goldman Sachs. According to the source, cuts will affect all levels, asset classes, and geographies.

JP Morgan has seen its headcount jump over the past two quarters, adding roughly 40,000 employees when it acquired Washington Mutual and another 6,000 from its takeover of Bear Stearns.

For the most part, JP Morgan has held up better than its rivals. Taking limited write-downs and generally holding onto staff.

However, a large piece of the investment banking business has been relatively idle with little to no initial public offerings being done in the past quarter. With business slowing, the bank may be seeking to reduce overhead.