JP Morgan cuts 9,200 jobs at Washington Mutual

JP Morgan is to axe more than a fifth of the workforce, about 9,200 jobs, at the former Washington Mutual. ┬á Nearly 4,000 of the cuts will be made by the end of January, and the remaining 5,200 will be eliminated by the end of 2009. The lingering 5,200 workers will receive double their annual salaries payable in a lump sum when their employment ends. ┬á While the job cuts at Washington Mutual were expected, the amount of additional cuts will put more pressure on AmericaÔÇÖs quickly rising unemployment rate. Americans are losing their jobs at roughly 240,000 workers per month, with about 6.5 percent of the US workforce unemployed. ┬á Washington Mutual was one of the most respected banks in the US, and in September became the largest American lender to fail after regulators were forced to take control and sell off the mortgage company. JP Morgan purchased the financial group in a $1.9 billion rescue acquisition overseen by US Treasury Secretary, Henry Paulson.  JP Morgan Chase purchased the bank in a distressed sale, after salvaging Bear Stearns with federal loans back in February. The Washington Mutual deal made JP Morgan the second largest US bank, with 5,410 branches in 23 states, of which it announced plans to close no more than 10 percent.