JPMorgan (JPM) Looks to Cut 19K Positions Through FY14
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JPMorgan (NYSE: JPM) is lower on the session Tuesday following reports that significant job cuts will take place over the next few years.
According to presentations on its website, about 13,000 to 14,000 jobs will be cut in the mortgage segment and 3,000 to 4,000 in community banking through 2014. Community banking cuts exclude home lending. Headcount will be reduced by 4,000 this year.
JPMorgan employed about 259,000 at the end of December.
Amid growing profits over the last three years, JPMorgan is speculating that increased competition in the mortgage industry coupled with continued low rates will hit margins, stemming the potential for growth.
As credit markets continue to stabilize, banks are better equipped to shift focus back to operational efficiency, including reduced overhead. JPMorgan CFO Marianne Lake commented today that the bank expects to reduce adjusted expenses by about $1 billion in 2013. Net interest income is expected to be flat and JPMorgan will unload about $1 billion of credit-card reserves back into earnings.
Shares are down about 1 percent Tuesday afternoon.
According to presentations on its website, about 13,000 to 14,000 jobs will be cut in the mortgage segment and 3,000 to 4,000 in community banking through 2014. Community banking cuts exclude home lending. Headcount will be reduced by 4,000 this year.
JPMorgan employed about 259,000 at the end of December.
Amid growing profits over the last three years, JPMorgan is speculating that increased competition in the mortgage industry coupled with continued low rates will hit margins, stemming the potential for growth.
As credit markets continue to stabilize, banks are better equipped to shift focus back to operational efficiency, including reduced overhead. JPMorgan CFO Marianne Lake commented today that the bank expects to reduce adjusted expenses by about $1 billion in 2013. Net interest income is expected to be flat and JPMorgan will unload about $1 billion of credit-card reserves back into earnings.
Shares are down about 1 percent Tuesday afternoon.
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