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Merrill, Morgan May Cut Thousands of Jobs

October 07, 2002|Reuters

Merrill Lynch & Co. and J.P. Morgan Chase & Co., two of the world's top investment banks, are preparing to cut thousands of jobs, sources familiar with the companies said.

The cuts are the latest for the global investment banking sector, which is estimated to have shed about 60,000 jobs since the start of last year. The banks have been slashing costs as the bear market has cut to a trickle lucrative takeover deals and initial public offerings.

Banking industry sources said J.P. Morgan, the second-largest U.S. banking company, could cut as many as 3,000 workers.

The source said the latest round of J.P. Morgan job cuts would trim its 20,000-member investment banking staff by 10% to 15%. The source said most of the cuts would hit staff in New York and Asia and added that Europe might emerge unscathed.

A J.P. Morgan spokesman in London declined to comment.

Meanwhile, sources said that Merrill Lynch, the biggest full-service brokerage in the U.S., was also preparing further job cuts. The bank, which currently employs more than 50,000, has cut about 15,000 workers in the last year.

Sources said the bulk of the cuts would focus on New York and London.

A Merrill Lynch spokesman said the company continued to actively manage its resources, including expenses and headcount, in line with the business environment.

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