Rebound in Housing Leads to Large Job Cuts at Big Banks (JPM) (BAC) (C)
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Amid JPMorgan (NYSE: JPM) recording three-straight years of profit following the financial collapse of 2009, not all workers are safe from the axe.
According to Bloomberg-compiled data out Tuesday, JPMorgan will lead the largest U.S. banks in job cuts with 17,000 expected through 2014. The bank last reported having 259,000 employees, records show.
In total, the six largest U.S. banks announced cuts to 1.8 percent, or 21,000 positions, through the first-quarter of 2013.
The rebound in the U.S. housing market means that many of the cuts will come in foreclosure units at the firms. JPMorgan plans to cut up to 15,000 jobs in its mortgage unit through the end of next year, CEO Jamie Dimon recently announced.
Bank of America (NYSE: BAC) has cut 5 percent of its appraisal unit and shuttered offices in New Jersey and New York in a campaign to reduce its workforce by 30,000 people. About 370 positions in California related to mortgage operations are also expected to be cut.
American Express (NYSE: AXP) announced plans to eliminate 5,400 jobs in January, mostly related to travel. The cut amounts to 8.5 percent of its total employee base.
Morgan Stanley also previously announced a reduction of 1,700 positions. At the end of last year, Citi (NYSE: C) planned about 11,000 cuts.
Next to interest expense, employees are generally the most expensive cost for financials and other companies. Investors will be tuning in for more information when JPMorgan and peer Wells Fargo (NYSE: WFC) announce first-quarter results on April 12th.
According to Bloomberg-compiled data out Tuesday, JPMorgan will lead the largest U.S. banks in job cuts with 17,000 expected through 2014. The bank last reported having 259,000 employees, records show.
In total, the six largest U.S. banks announced cuts to 1.8 percent, or 21,000 positions, through the first-quarter of 2013.
The rebound in the U.S. housing market means that many of the cuts will come in foreclosure units at the firms. JPMorgan plans to cut up to 15,000 jobs in its mortgage unit through the end of next year, CEO Jamie Dimon recently announced.
Bank of America (NYSE: BAC) has cut 5 percent of its appraisal unit and shuttered offices in New Jersey and New York in a campaign to reduce its workforce by 30,000 people. About 370 positions in California related to mortgage operations are also expected to be cut.
American Express (NYSE: AXP) announced plans to eliminate 5,400 jobs in January, mostly related to travel. The cut amounts to 8.5 percent of its total employee base.
Morgan Stanley also previously announced a reduction of 1,700 positions. At the end of last year, Citi (NYSE: C) planned about 11,000 cuts.
Next to interest expense, employees are generally the most expensive cost for financials and other companies. Investors will be tuning in for more information when JPMorgan and peer Wells Fargo (NYSE: WFC) announce first-quarter results on April 12th.
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