J.P. Morgan To Cut 9,200 At Washington Mutual

December 1, 2008 8:17 p.m. EST

New York, NY (AHN) - JP Morgan announced Monday it will cut 9,200 jobs at recently acquired Washington Mutual. The move will impact more than 21 percent of the WaMu workforce.

The first 4,000 jobs are expected to be cut by the end of January. The remaining 5,200 employees will stay on for the transition into JP Morgan but will lose their jobs by the end of 2009.

The employees that do stay on for the transition will receive double salary as of Oct. 1 until they are let go. They will also be eligible for severance packages.

JP Morgan purchased Washington Mutual in September after the bank filed for bankruptcy protection due to massive losses in its $176 billion loan portfolio. Wamu was the largest U.S. bank failure in history.

Shares of JP Morgan fell 17.5 percent on Monday to $26.12.