Nov. 21 - PEHUB - NEW YORK (Reuters) - JPMorgan Chase & Co is cutting 10 percent of its investment banking staff — about 3,000 jobs — as the economic slowdown starts to bite into its earnings, people familiar with the situation said on Thursday.
JPMorgan shares slid as much as 18 percent as one analyst said the cuts could reflect greater-than-expected weakness at the bank, long seen as one of the industry’s few stalwarts through the credit crisis.
“Because JPMorgan has held up relative to the group, they’re more vulnerable to a fall,” said Ben Wallace, securities analyst at Grimes & Co in Westborough, Massachusetts, which holds JPMorgan shares.
“Cutting investment banking jobs raises questions about profitability at the firm,” he said.
The company will likely cut staff in line with competitors such as Goldman Sachs Group, which is cutting 10 percent, the sources said.
On Thursday, JPMorgan let go at least six equity sales officials from its New York desk, according to one person familiar with the matter. Read more.
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