Of the massive merger-related layoffs expected to occur at J.P. Morgan Chase & Co., over one hundred home equity employees will soon be cut in Florida.
J.P. Morgan will close its mortgage-processing unit in Maitland, Fla., and over 150 employees will consequently be laid off, according to spokeswoman Judy Miller.
"It's an opportunity to leverage other resources," she said.
J.P. Morgan, which merged with Bank One on July 1, said the job cuts at the indirect home equity processing and servicing center will be phased out during the next seven months. This time frame allows affected employees the opportunity to fill other positions that may become available through merger consolidation, she said. The company will strive to place as many of the affected employees.
The Florida layoffs are part of the 12,000 head count reductions expected companywide due to merger cost savings initiatives. The overall job cuts, which were reportedly increased from the previous estimate by 2,000, have not yet been compartmentalized, Miller said.
J.P. Morgan also announced it raised its merger cost savings estimate from $2.2 billion to $3 billion, which is expected to be phased over the next three years, and approximately two-thirds of the savings will be realized by 2005.
"The new management team is working well together," said William B. Harrison, Jr., company chairman and CEO, in a written statement. "We have made all of the decisions on technology platforms, we announced our decision on franchise branding and ... we remain focused on clients, disciplined execution and performance."