J.P. Morgan plans to cut 17,000 jobs over two years
New York, NY, United States (4E) – J.P. Morgan Chase & Co. announced plans Tuesday to cut 17,000 jobs over a two-year period as pressure to slash costs increases with the banking industry facing stagnant revenue.
Chief executive Jamie Dimon said on Tuesday in an annual shareholder meeting that fewer employees are needed with new technology and an improving housing market since it requires fewer people to process mortgage defaults.
The New York-based company, the most profitable lender in the U.S. last year and the nation’s largest bank by assets, told investors during a presentation at its Manhattan headquarters that it would cut 4,000 jobs from its global staff this year and 13,000 next year.
The cuts represent 7 percent of J.P. Morgan’s 259,000 workforce. The redundancies in the consumer banking unit will be offset by hirings in commercial banking, private banking and asset management.
Last year, J.P. Morgan’s net income rose 12 percent to $21.3bn on-year, which is a company record. Revenue was flat at $99.9bn due to a slow U.S. economy that has led to slower loan growth and uncertainty in the market environment that has reduced profitability in banking and trading.
Other U.S. banks have began slashing expenses to boost profitability and emerge from troubled areas. Bank of America plans to let go of 30,000 employees and Citigroup said in 2012 that it would cut 11,000 jobs.