US - JPMorgan Chase could cut as many as 4,000 of its own employees worldwide in a bid to accommodate an estimated figure of 6,000 intake from the Bear Stearns acquisition.

Sources told Reuters that this is also partly due to “the slowdown in investment banking activity and the credit market crisis”. This comes after weeks of speculation that half of Bear’s employees would be laid off.

With the merger expected to be completed 1 June, Jamie Dimon, JPMorgan’s chief executive, recently told investors the bank had extended job offers to 6,000 Bear employees.

They will fill areas which JP Morgan is not strong in such as prime brokerage, clearing, energy trading and investment banking coverage. Bear Stearns has a total of 14,000 employees.

“On a net basis, the Bear merger would boost JPMorgan's total headcount by 4,000 to about 184,000 worldwide”, sources told Reuters.

Decisions regarding 3,500 Bear employees, working in technology and operations, will however be finalised in the next two weeks. They will “likely see a lower percentage of job offers”, the source added.

The bank is currently under pressure to keep costs and combined headcount under control as the financial market slump continues.

“With Wall Street banks firing tens of thousands of employees, JPMorgan expects to cut from its own staff to make room for Bear Stearns employees deemed superior”, the source said.