Magazine article American Banker

Chase to Cut or Move 2,000 Jobs from N.Y.-Area Office

Magazine article American Banker

Chase to Cut or Move 2,000 Jobs from N.Y.-Area Office

Article excerpt

Chase Manhattan Corp. this week told 2,000 employees in one of its main back-office centers that many of their jobs would be moved and some could be lost.

Chase said its operations in two office complexes in Jericho, N.Y., will be shut down in two years. Chase employs about 73,000 workers worldwide, 7,700 of them on Long Island.

About 900 jobs in the Jericho call center are to be moved to a $36 million facility planned for Arlington, Tex.

An unspecified number of other back-office functions would be moved to Chase's four other sites on Long Island, or to Tampa, or Tempe, Ariz.

A Chase spokesman said the moves are being made to take advantage of cheaper labor outside the New York area.

"Like all companies operating in a competitive environment, we continue to review where to best locate operations to be more efficient," said Ken Herz, the spokesman.

Mr. Herz would not elaborate on the number of potential job cuts but said the banking company "ultimately expects layoffs."

Many other large banking companies have moved to centralize technology functions outside their headquarters markets, in areas where labor and real estate are less expensive.

Citigroup Inc., for example, is consolidating many U.S.-based customer service and back-office operations in Tampa.

J.P. Morgan & Co. has said it plans to open a technology center this year in Glasgow, Scotland, to serve its European operations, which are based in London. …

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