Report: J.P. Morgan Chase job to eliminate 8,000 jobs Source: AP WorldStream

8/20/01 5:32:00 PM

BC-US-JP Morgan-Jobs,0336

Report: J.P. Morgan Chase job to eliminate 8,000 jobs

NEW YORK (AP) _ J.P. Morgan Chase & Co., the second-largest bank in the United States, will cut 8,000 jobs because of sluggish market conditions, up from previously announced plans to eliminate about 5,000 positions, Dow Jones Newswires reported Monday.

The reduction would represent about 8 percent of bank's work force of about 100,000, Dow Jones reported, citing unnamed company sources.

Company spokesman Joe Evangelista declined comment on the report.

Dina Dublon, the company's chief financial officer, said last month that the cuts would significantly exceed the original 5,000 figure but did not provide a specific number.

J.P. Morgan Chase was formed by the merger Dec. 31 of the Chase Manhattan Corp. and J.P. Morgan & Co.

Like many of its rivals, J.P. Morgan's business has come under intense pressure this year as a result of the slowing economy and significant downturn in financial markets.

Last month, the company reported second-quarter earnings tumbled more than 76 percent as the bank faced steep declines in fees from underwriting and stock trading and big losses in its venture-capital division.

Investment banking revenues dropped 11 percent from a year ago, and fees in that division dropped 21 percent from the second quarter of 2000. Revenues from stock and bond trading were also down, falling 11 percent.

The bank was particularly stung by troubles at JPMorgan Partners, which had private equity losses of dlrs 827 million in the quarter, compared with gains of dlrs 447 million a year ago. J.P. Morgan said total write-downs and write-offs of dlrs 1.02 billion in its venture-capital portfolio were primarily related to technology and telecom investments made in 1999 and 2000.

Shares of JP Morgan Chase were down 39 cents to dlrs 41.09 in trading on the New York Stock Exchange.

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-- Martin Thompson (mthom1927@aol.com), August 20, 2001