Investment bank J.P. Morgan confirmed it is making cuts in its workforce, becoming the latest Wall Street firm to acknowledge such reductions.
A bank spokesman on Monday said the nation's fourth largest bank "is making selective job cuts... with no across-the-board (job cut) plans."
The bulk of the cuts stem from the bank's emerging markets and fixed income units.Analysts said J.P. Morgan (JPM) is near the end of its target for cutting roughly 4.5 percent of its workforce.
J.P. Morgan's (JPM) stock slid 7/8 to 102 7/8 in recent trading. The financial issues started off on a weaker note, with the New York Stock Exchange's broad Financials index down 0.6 percent.
JP Morgan is seeking to bring costs under control, particularly in units hardest hit by the global downturn. The bank cut 10 percent of its emerging markets staff, The Wall Street Journal reported Monday.
The cuts at the nation's fourth largest bank are par for course on Wall Street this fall. Merrill Lynch (MER) announced cuts totaling some 5 percent of its workforce and Citigroup (CCI) is trimming employees in its Salomon Smith Barney unit.
Donaldson, Lufkin & Jenrette (DLJ) and Bear Stearns (BSC) are also among the big brokerage firms said to be making cuts this year.
"There's a little trimming every year. This year, of course, there's a little more than usual," said banking analyst George Bicher at Bankers Trust (BT), which has also seen some cuts.
"Some firms are just not attracting attention to (their job cutting plans)," he added.
Written By Emily Church