In the surprise of the decade, failed consumer bank Washington Mutual, who earlier this year filed bankruptcy to become the nation's largest bank failure ever has filed a dubious report with Washington state's Employment Security Department announcing "an undisclosed number of layoffs" to take effect January 31st, 2009. The fact that no number was given, even an approximate, leads me to believe the number is very big and was not provided in order to keep the peace.
JP Morgan, the new proud owner of the failed institution has said that employees who will be put on the street January 31st will be notified by December 1st, 2008.
As JP Morgan re-tools WaMu to better fit their business, expect hefty layoffs from the salaried executives at HQ to be replaced by their contemporaries at Chase. Highly paid executives losing their jobs in large numbers could prove to be disastrous for retail in Seattle and surrounding suburbs if it materializes.
It turns out that greedily and recklessly lending money to people with bad credit and low income on speculation of a continutation of an asset class bubble and credit bubble can lead to ruination. Who'd have thought?
Washington Mutual is headquartered in Seattle, WA.
Related:
LowFi: Fidelity Back at "It", Further Reductions, Citi Under Siege: Citigroup Announced Layoffs Larger Than Expected
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