JPMorgan to slash 19,000 jobs by end-2014

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NEW YORK — US banking giant JPMorgan Chase plans to eliminate 19,000 jobs by the end of 2014 as it seeks to rein in costs, the company said Tuesday in an investor presentation.

JPMorgan Chase intends the majority of the cuts, 15,000 to come from the mortgage banking division, said spokeswoman Kristin Lemkau.

Another 4,000 jobs will be eliminated from the consumer banking banking division, Lemkau said.

The company plans to add 2,000 new posts in asset management and commercial banking, Lemkau said, leaving a net loss of 17,000 posts.

JPMorgan Chase estimated its full-year expenses will drop by $3 billion in 2014 from the 2012 level as the company seeks corporate and investment bank cost synergies, according to the presentation.

The Wall Street bank reported earnings of $21.3 billion in 2012, up from $19 billion a year earlier, but revenue that slightly missed market expectations.

The jump in profits came despite an embarrassing $6.2 billion trading loss stemming from a trader nicknamed the “London whale.”

The trading losses led to several resignations and reassignments and resulted in lower 2012 take-home pay for JPMorgan chief executive Jamie Dimon.

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  • Guest

    Alternatively, the PH BPO industry should start encouraging more tenured employees to take upskill and acquire certifications in CFA, CIMA and others. This is the only way for the local BPO industry to move up the value chain. It’s quite an investment but the pay will be higher.

  • philip99_manila

    how bout the outsourced jobs here in PH? Especially the IT team, are they affected?

    • Guest

      Tech Ops in Manila is not affected. But don’t be complacent.

  • http://eltorobumingo.blogspot.com/ el toro bumingo

    Sad news. Pero sana ‘di apektado mga call center agents ng JP Morgan dito sa Pinas. 

    • Guest

      The agents handling mortgage LOB will inevitably be affected. The housing market in the US has not really recovered. 

  • http://pulse.yahoo.com/_EXFI4EUGM23PQ4FMQKLVH36OXI Jose

    Dang.  People losing their jobs always sucks.

    Here’s hoping the JPMorgan jobs in the Philippines aren’t affected.  Outsourced jobs are generally safe during downturns, but still…

    • Guest

      They already have. The mortgage division has seen a reduction in headcount and attrition is no longer replaced. Same goes with treasury and securities services. It never is a good thing but it is what it is. Wells Fargo is not expanding as fast as it originally planned. Bank of America has slowed down its expansion due to forex considerations. ANZ has decided to expand more aggressively in Chengdu instead of Manila. Deutsche Bank is also on a global headcount slashing spree. 

      • http://pulse.yahoo.com/_EXFI4EUGM23PQ4FMQKLVH36OXI Jose

        Aw man, that sucks.

  • http://www.facebook.com/profile.php?id=100000643515207 Jojo Aquino

    hahaha pabagsak na JP morgan next time di na JP morgan ang pangalan nyan .. yahoooo

  • bogli_anakdami

    it shouldn’t happen… jp morgan should have hired flip bankers and economissed… lookit flipland banking institution… it’s solid…

    flipland banks over perform all asian banks combined… walang sinabi ang japan, ‘ong kong, at taiwan…

    yehey, you go flips!!!

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