JPMorgan Chase plans to eliminate 12,000 jobs as it swallows failed bank Washington Mutual.

The financial giant said it expects to save about $2 billion by combining operations of the two firms, with about $1.35 billion saved in payroll alone.

Shares of JPMorgan jumped nearly 10 percent on the moves before settling at $23.05, a 6 percent rise.

Most of the cuts will come from Washington Mutual, with as many as 2,000 from JPMorgan’s investment banking arm, officials said.