JPMorgan is cutting up to 4,000 jobs in an effort to cut expenses and increase profitability.
Considered to be the nation’s largest bank in assets, JPMorgan Chase & Co has announced plans to eliminate between 3,000 to 4,000 jobs from its consumer banking division in 2013. Currently, bank branches account for roughly 25 percent of the company’s total workforce.
According to Reuters, JPMorgan Chase represents one of the few significant banking institutions to continually add new branch locations in the wake of the recent US financial crisis.
With nearly 6,000 branches under its belt by the end of last year, the company has indicated plans to add roughly 100 more each year.
With plans for expansion, the company is reportedly focusing on increasing revenue through the sale of products and services to wealthy depositors. It will reduce the number of on-site bank tellers in favor of additional sales positions.
According to Bloomberg, the 4,000 expected job losses in the consumer banking sector this year will come through attrition and some redeployment. The company seeks to achieve an approximately $1 billion reduction in adjusted expenses throughout 2013.
JPMorgan also plans to cut between 13,000 to 15,000 jobs from its mortgage division by the end of next year. The planned outcome will be to decrease the employment rate at each branch location by 20 percent through 2015, according to Ryan McInerney, the company’s head of consumer banking.
JPMorgan Chase reportedly earned $21.9 billion in 2012 and has indicated that it has the potential to increase that number to $27.5 billion this year.
What do you think of JPMorgan’s plan to cut approximately 4,000 jobs from its workforce this year?