SEATTLE -- According to several reports, JP Morgan Chase will lay off 70 percent of Washington Mutual employees in Seattle.

The move comes as JP Morgan Chase shifts all Washington Mutual operations to New York and other business centers in the U.S. after the company acquired the thrift in September.

VIDEO: JP Morgan Chase To Shift Operations From Wash. To N.Y.

Currently, Washington Mutual is one of Seattle's largest employers.

Reports indicate that up to 3,000 of the 4,200 workers in the Seattle area will be laid off, according to the Seattle Times, which quoted anonymous Washington Mutual executives who recently left the company.

The reports also indicate the layoffs start this week and that some employees have already been notified. JP Morgan is expected to be finished with layoff decisions by Dec. 1.

Some employees will stay through January and others will continue for several months during the transition.

Ben Clark is one of those being laid-off. He was given notice a couple weeks ago, but like many, he's staying on the job at least until the end of the year.

Clark said employees seem to be busying themselves as they wait for word.

"People have their heads down, ready to go out the door," Clark said.

A small number of employees are being offered other jobs in the company.

The cuts affect the main business workers in downtown Seattle and not the actual bank branches at this point.

JP Morgan has not confirmed the reports.

Seattle Mayor Greg Nickels expected job cuts when JP Morgan Chase bought WaMu in September, but the reality is harder to swallow.

"It's a sad day. And we're going to have to come together and lend support to the workers who are losing their jobs," Nickels said.

In a statement from Governor Chris Gregoire, she said the state's Employment Department will step in quickly to help workers file for unemployment and look for new jobs.

She also renewed her pledge for a state economic stimulus package to help our souring economy.

Washington Mutual is currently huge tenant in Downtown Seattle, leasing more than 1.5 million square feet of office space. Experts say the migration of operations will have a dramatic impact on the downtown Seattle leasing market and that combined with the layoffs will contribute to the struggling economic climate in the Puget Sound area.

Dave Magee, a commercial real estate broker said it won't be as big a hit as the dot-com crash they saw in the late 90s.