JPMorgan Chase To Cut 17,000 Jobs Over The Next 2 Years

JPMorgan Chase job cutsNEW YORK -- JPMorgan will trim about 19,000 jobs over the next two years but cast a positive spin on the news: It is shrinking the unit it had beefed up to handle troubled mortgages.

The bulk of the cuts, about 15,000, will come at the mortgage unit, which had swelled to about 50,000 workers from a pre-financial crisis roster of 20,000 because the bank needed more people to process defaulted mortgages. The bank said it hopes to find jobs in other parts of the company for displaced workers through a "redeployment" program.

The rest of the cuts, about 4,000, will come from the consumer banking business, mostly the branches. JPMorgan said those cuts will come through attrition, not layoffs. The bank noted that it's also adding jobs in certain areas, such as commercial banking and asset management. Overall, it expects its payroll to be down by about 17,000 at the end of 2014. That means it would fall to about 242,000 from its current 259,000, a 6.5 percent reduction.

The cuts were revealed in a presentation to investors Tuesday and are part of the bank's bigger cost-cutting campaign. JPMorgan increased its profits and revenue in 2012 and has weathered the financial crisis and its aftermath better than most.

More: Sign Up For AOL Jobs' Newsletter

But like its peers, it's facing a host of challenges. Banks are navigating new government regulations that have crimped some old sources of revenue, like issuing credit cards to students. The banks have also said that complying with the new regulations is costing them more money.

The move could signal a new direction for staffing: JPMorgan already shed about 1,200 jobs in 2012, after adding jobs in 2011 and 2010.

Bank of America, Citigroup, Morgan Stanley and Goldman Sachs all trimmed jobs in 2012. Morgan Stanley's current round of job cuts has focused on senior ranks and investment bankers. Bank of America has also said it needs fewer people to work through problem mortgages, though it has cut jobs in other areas. Citigroup is scaling back in countries that it no longer sees as growth engines.

Shares of New York-based JPMorgan Chase & Co. ended Tuesday down 10 cents at $47.60. The stock has gained about 24 percent in the past year.

Are Bankers Honorable Men?



Don't Miss: Companies Hiring Now



Related Stories


Looking for a job? Click here to get started.

Add a Comment

*0 / 3000 Character Maximum

65 Comments

Filter by:
Stephen

Well it looks like some of the new banking regulations or the truth about the banks managment isforcing them to retrench and to save some of the bonuses they give to the board they are going to cut the employees on the bottom rungs. Which result in more foul ups at the window and when you are mis-charged on a loan,mortgage or credit card. Becuse we cannot have the bosses losing any sleep over there not getting their bonuses.But the lower levelcustomers nd employees hey there part of the 47% that the Republicans do not care about.

May 16 2013 at 3:08 PM Report abuse rate up rate down Reply
wlnorman

Note that banks say nthey are deleting middle/upper management jobs and heavily using attrition/re4location toabsorb reduction.

Fed and local go0vernments need to take this approach. They cut the workers and hold high pay employees that are more figureheads with little contribution -high turnover "appointees", supervise few workers and then in title not based on involvement., If turn lose of one $150,000 employee with all their benefits and FICA and pensions; can save 6-10 working level employees. higher salaries should havev to take more furlough days so lower can take less - makes lost of descretionary incomev much more equitable and balances hardship. Prevents hardships reaching point on anyone that lose homes/jobs causing riopple effect hurting even more employees.

March 01 2013 at 12:59 PM Report abuse rate up rate down Reply
stevemontani

Yahoo! we've turned the corner to prosperity!! Thank you great leader!

March 01 2013 at 12:11 PM Report abuse +1 rate up rate down Reply
1 reply to stevemontani's comment
Stephen

You should be thanking the Republican House and Senate who keptthe toplevel fromhaving toorry about where the tuition for the next year of a Private school, vacationor new Testa Rosa for there children was going to come from.

May 16 2013 at 3:12 PM Report abuse rate up rate down Reply
garygkennedy

Its just the begining You havent seen bad yet wait till next year when Obama Care get implemented we will be going backwards. Who ever voted for this lying con artist president better not complain about HIGHER GAS, FOOD, DEBT, UNEMPLOYMENT, TAXES ONLY THING GOING DOWN IS PAY CHECK THANKS LOSERS WHO VOTED FOR THIS IDIOT

March 01 2013 at 9:05 AM Report abuse +1 rate up rate down Reply
2 replies to garygkennedy's comment
sam54ct

Read the article, they're cutting positions that they had to hire to deal with the mortgage mess from the Bush mortgage bubble. Yet, dumb to blame Bush, when in fact it was Hank Paulsen, CEO of Goldman Sachs who in 2004 sucessfully petitioned the SEC to drop lending standards for financial institutions. The result, they over leveraged themselves, and crashed the housing market.

March 01 2013 at 10:20 AM Report abuse -1 rate up rate down Reply
Stephen

I guss that you did not becuse you would rather have overty ndhunger go one among your fellow countryman untione of themgoes out and buys the self a 50 round clipand just happens to fire in your general direction aftey slipped or my finger did or may be Ithey got an itch in there one good eye.
But you were just unluky in getting shoot before ypu could fire off you clip which only had 45 rounds

May 16 2013 at 3:16 PM Report abuse rate up rate down Reply
farsideopus

Looks like Obama's recovery plan is in full swing. Betting upper management is getting bonuses for all of the layoffs.

March 01 2013 at 5:59 AM Report abuse rate up rate down Reply
klovepr

This isn't surprising considering our economy is contracting. What a mess our fearless leader has created.

March 01 2013 at 4:59 AM Report abuse +4 rate up rate down Reply
1 reply to klovepr's comment
Yovanna

Another person on the right who doesn't know how to read.

March 01 2013 at 12:09 PM Report abuse rate up rate down Reply
Stephen

Al thr bnk needs to do is cut three maby four of its top exec. who are actullly doing no show jobs.
I mean they should easily save about $2000000 per year not includeing all the benifits and you cannot tell me that these people would be ou collecting welfare or food stamps.

March 01 2013 at 12:37 AM Report abuse -1 rate up rate down Reply
fine7760

While they are cutting back one department they sure as hell aren't cutting back on branches at least in Southern California. Since taking over Washington Mutual they have about doubled the number of branches near me. There are more Chase branches than any other bank. It's actually difficult to locate B of A and Wells Fargo, the two other large banks. Those being laid off will have another job unless they think they are to good to be bank tellers. I know the government agency I was with laid off about 300 office employees but at the same time hired about 200 people in operations. Not one laid off person accepted the new jobs which in the long run paid better than their old job but didn't have the prestige.,

February 28 2013 at 9:53 PM Report abuse rate up rate down Reply
CMEL57

More money for that pig in charge of JP Morgaan-Jaime Dimon. Hope your bank collapses.

February 28 2013 at 8:44 PM Report abuse -2 rate up rate down Reply
1 reply to CMEL57's comment
hhca13

Jaime Dimon is a friend and advisor of Obama. The bank will not collapse.

March 01 2013 at 11:29 AM Report abuse rate up rate down Reply
Corvette Man

That way the sob's will get a bigger bonus....glad I dumped them for a credit union

February 28 2013 at 8:28 PM Report abuse +1 rate up rate down Reply

Search Articles

Picks From the Web