Chase to Cut 4,500 Jobs, Focus on Profit Areas

Chase Manhattan Corp., the largest U.S. bank, said it will cut 4,500 jobs, or 6.5% of its staff, to reduce costs and invest in more profitable businesses. The bank will take a $320-million charge in the first quarter to pay for the cuts, its second round of firings since its 1996 merger with Chemical Banking Corp. Chase said it will fire about 2,200 employees, with the remaining cuts coming from leaving vacant positions unfilled. The company also said it plans a 2-for-1 stock split and will increase its quarterly dividend by 16% to 72 cents. The bank plans to use some of the savings to expand staff in corporate banking, in its national consumer business and in Chase Technology Services, which includes global cash management. The news sent Chase shares up $6.44 to close at $135.75 on the New York Stock Exchange.