In an effort to streamline productivity and contain its expenses, J.P. Morgan is letting go of 5,000 jobs. The cuts have already started and will continue in the next year, reducing at least 2 percent of its workforce. The decision was made as the company moves toward strengthening its online and mobile banking, a source revealed to the Wall Street Journal.
Its 5,570 branches across the United States have recently begun to remove human tellers and rely more on technology in daily operations. It is projected that each branch will lose at least one employee through attrition, according to a report from Business Spectator.
But J.P. Morgan's other business units could also be affected, as the company also plans on cutting down on mortgage workers, especially with home loan volumes declining, according to Bloomberg Business.
The company, which had 241,145 employees as of Mar. 31, announced its plans of cutbacks, particularly in its investment and consumer banking divisions, during a presentation to investors in February. It is projected that J.P. Morgan's expenses will drop from $58.4 billion in 2014 to $57 billion in 2015.
"We won't compromise investment dollars in order to improve short-term efficiency or performance," said Marianne Lake, the company's chief financial officer, in the Business Spectator article.
Meanwhile, other major banks in the U.S.—like Citigroup and Bank of America—have also been doing their fair share of trimming down as revenue continues to suffer due to low interest rates and stricter regulatory laws.
