JPMorgan Said to Plan Commodity Trader Job Cuts in London, Dubai

JPMorgan Chase & Co. (JPM), the biggest U.S. bank, told about 10 traders in its commodity business that their jobs may be eliminated, according to two people with knowledge of the situation.

The bank may dismiss or relocate seven in London and one in Dubai, said the people, asking not to be identified because the matter is private. A second Dubai-based trader will be relocated to London, the people said. Patrick Burton, a spokesman for the bank in the U.K. capital, declined to comment.

JPMorgan had the second-biggest revenue from commodities after Goldman Sachs Group Inc. last year, analytics company Coalition said in March. New York-based JPMorgan has commodity bankers based in 12 countries, according to its website, though it doesn’t disclose how many commodity traders it has globally.

Commodities revenue at the 10 largest banks slumped 24 percent last year to $6 billion amid low volatility and reduced client activity, according to a Feb. 15 Coalition report. Increasing concerns about regulation and capital sensitivity also led banks to re-examine commodity strategies, it said.

Low Volatility

The Standard & Poor’s GSCI Spot Index of raw materials climbed less than 0.3 percent in 2012, the worst performance in four years. The gauge’s 100-day historic volatility fell to as low as 14.1 percent in May, from as much as 23.8 percent in January 2012, data compiled by Bloomberg show.

JP Morgan said in February it will eliminate as many as 19,000 jobs in mortgages and community banking through 2014 as it trims expenses. This year, the bank’s headcount will shrink by about 4,000 people, mainly through attrition, while some employees are redeployed to other areas, said Kristin Lemkau, a spokeswoman, said at the time.

The bank’s first-quarter profit rose 33 percent to a record last month as the bank shrank expenses by 16 percent.

To contact the reporters on this story: Stefania Bianchi in Dubai at sbianchi10@bloomberg.net; Ambereen Choudhury in London at achoudhury@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net; Edward Evans at eevans3@bloomberg.net

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