JP MORGAN Chase will chop 4,000 jobs this year in its mortgage and consumer banking arm, keeping a tight grip on costs even as its branch network expands, the US bank announced yesterday.
London staff should be unaffected, while the bank is still expanding other departments – it has hired hundreds of staff in areas like corporate banking and private banking in the last two years, for example.
Even though the bank earned $21.9bn (£19.2bn) in another record year in 2012, it hopes to trim another $1bn from costs.
The 4,000 job losses come in at 1.5 per cent of the bank’s total workforce, and were unveiled in a presentation at an investor day in the US.
They will take total jobs cuts by 2015 to 19,000.
The bank plans to add another 100 branches per year to its network of 5,614, but wants to reduce the costs of running them.
As part of the strategy it will also focus on more wealthy customers, spending more on sales staff in the wealth management units.
The bank’s shares dropped 0.88 per cent on the day.