After hitting rock bottom, extreme failure and then being bought out by JP Morgan, Washington Mutual Bank (WAMU) in the United States has cut jobs by 13%. It will eliminate 1,600 jobs with layoffs in the San Francisco area and Seattle. Again, the mortgage market in which Washington Mutual was a big player has contributed to the downfall of the corporation. Employees have feared the repercussions for weeks and finally their fears have materialized. Thousands will be laid off for sure. It is not a good time for Washington Mutual and it may even get worse for the bank.
At the point in time when JP Morgan Chase took over the bank, Washington Mutual had 43,000 employees nationwide, more than 4,300 employees in the Seattle area and 5,800 in the state of Washington. The mass of the slashes are most likely to come in administrative, support and back office functions that duplicate jobs and facilities that JP Morgan already has in its ranks. That suggests the brunt of the cuts in jobs will come in places like Seattle, where WAMU had its corporate headquarters.[1] JP Morgan will do what is necessary in its capacity to manage the company’s meltdown. The sub-prime mortgage market has suffocated the major player beyond belief. If it means getting rid of a few jobs, than why not. As long as survival is dependent on that, then it provides a short tem solution for the company to cope with the crisis situation facing the banks and financial institutions.
No comments:
Post a Comment