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Fri, Nov 17, 2000 EST
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Chase Manhattan to Cut 4,500 Jobs

NEW YORK — Chase Manhattan Corp. said Tuesday it would cut about 4,500 jobs, or 6.5 percent of its work force, and take a $320 million net charge in the first quarter in a realignment of its operations.

The largest U.S. bank, following in the footsteps of competitor Citicorp , which recently announced plans to cut 7,500 jobs, said the realignment included setting up a single national consumer services franchise; combining technology-intensive businesses and functions into a single entity; and reorganizing certain global banking units.

Chase, which employs 69,000 people worldwide, said the reorganization would reap $460 million in annual savings that would be reinvested in its high-growth businesses. The reorganization, which analysts had thought would entail some 3,200 job cuts, will also create a new business unit — Chase Business Services — to reduce back-office overhead.

"Chase has emerged over the past two years as an entirely new company with unusual opportunities for growth," Chief Executive Walter Shipley said in a statement. "To take advantage of these opportunities, we are moving decisively to increase our effectiveness and maximize resources available for investment in our high-potential businesses."

The job cuts come at a time when other U.S. banks also are laying off employees to reduce overhead and boost profits. In addition to Citicorp, J.P. Morgan & Co. Inc. said last month it would cut 750 to 800 people, or 5 percent of its work force, to improve its bottom line, and NationsBank Corp. said in January it would cut some 6,000 jobs in Florida following its acquisition of Barnett Banks Inc.

Chase said it would effect the 4,500 job cuts in part through normal attrition and a hiring freeze. It said it would create "a substantial number" of new positions in areas it has earmarked for expansion.


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