J.P. Morgan & Co. is taking broad steps to cope with Wall Street's stubborn slump, reshuffling top management and disclosing a $55 million first-quarter charge to pay for cuts in its work force.
J.P. Morgan, the nation's fifth largest commercial bank, didn't disclose the magnitude of the staff cuts. But an industry source speaking on condition of anonymity said about 850 workers, or 5 percent, of the bank's 17,000 worldwide staff would lose their jobs. The cuts will be made across the board, hitting investment bankers, traders and support staff.
The firm also said its chief financial officer, James T. Flynn, 55, is retiring after more than 30 years at J.P. Morgan. He will be replaced in June by John A. Mayer III, a managing director and head of corporate finance.