JPMorgan Chase & Co. is planning to dismiss hundreds of employees from its consumer unit in an attempt to rein in costs.
According to a Livemint report citing unidentified sources, the bank plans to notify the affected employees on February 6 and the job loss will be scattered across divisions. JP’s consumer unit houses deposits, credit card, home, and auto lending businesses and contributes nearly half of the company’s revenue.
Job losses in banks around the world have become a very common measure to reduce costs amidst a global economic slowdown. A shift in consumer behavior and the increase in digital technology can also be attributed to these job losses. At JPMorgan, these job cuts are a part of a broader review of operations as customers are increasingly accessing the bank’s services through digital platforms.
Although JPMorgan hasn’t given any official confirmation, the planned cuts represent about 1% of the employees in the unit and workers will be given the chance to apply for other roles in the firm, said the Mint report.
Under the leadership of co-President Gordon Smith, JPMorgan has cut around 7,000 operations jobs from the consumer unit in four years and the bank has decided to continue the reductions.
On the contrary to these losses, the firm has invested billions of dollars in technology to make it easier for customers to access services without the help of workers. It was reported that more than 80% of transactions in the consumer bank were completed through the “self-service” channels in 2018.
Along with the self-service channels, the company is also opening hundreds of branches in new locations to attract customers and boost lending.
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