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Bear Stearns had a higher value than $10 (£5) per share, which was the price paid for the business.
Problems in the banking and investment market have negatively impacted on profits and may result in further redundancy in the sector.
Around 15 per cent of workers at JP Morgan Chase have been let go from the firm already during the past year.
Executive, Bill Winters, commented: "A lot of you had some of friends go, and that's hard for everybody, but it's the right thing to do for the company. The revenue base available in this economy must be matched with appropriate cost structure."
Criminal charges could be levied against two former executives from Bear Stearns regarding the subprime mortgage market, according to the Associated Press.
