Citigroup and JPMorgan Chase & Co., two major banking companies with branches in Connecticut, are reportedly preparing to cut thousands of jobs in their worldwide operations.
Britain’s Sunday Telegraph reported New York-based JPMorgan Chase was poised to cut more than 3,000 jobs amid the ongoing credit crisis.
JPMorgan has not been hit as hard as other banks amid the credit market problems and has actually broadened operations through the acquisition of two other major financial firms; Bear Stearns Cos. and Washington Mutual Inc. The bank has eliminated some jobs due to redundancies after acquiring Bear Stearns and Washington Mutual.Â
At 11 a.m., shares of JPMorgan Chase traded at $33.10, down $1.37, or 4 percent.
Meanwhile, a person briefed on Citigroup’s plans says the banking giant is cutting another 53,000 jobs in the coming quarters.
CEO Vikram Pandit is revealing the plan at the company’s town hall meeting today with employees.
The person requested anonymity because the plans haven’t been made public yet. Speaking briefly to The Associated Press after a speech in Dubai today, Citigroup Chairman Winfried Bischoff did not deny that job cuts are coming.
The 53,000 job cuts are in addition to the 22,000 already being eliminated from Citigroup’s 375,000-member work force as of the end of 2007. The latest cuts bring the total job reductions to 20 percent.
At 11 a.m., Citigroup shares traded at $9.09, down 43 cents, or 4.5 percent. (AP)
