Earnings at JPMorgan Chase & Co.’s investment management and private banking division declined 12% to $98 million during the third quarter, the company said this week. The earnings were off 21% from the year-ago period.

Overall, third-quarter net income at JPMorgan Chase slid more than 90% to $40 million from $449 million during the third quarter of 2001.

As a result, the company expects to lay off 2,000 workers, which it hopes will save roughly $700 million. JPMorgan said in a statement that it will likely pay $450 million in severance and restructuring costs.

The firm attributed the dismal earnings to higher credit costs and lower trading results.

"While the strength reflected in our retail and operating services businesses is a major positive, our performance in the aggregate is very disappointing," JPMorgan Chase CEO William Harrison, Jr., said in a statement. "As a management team and as shareholders, we are committed to this firm realizing its earnings potential over the long term."

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