JPMorgan Chase & Co. will cut thousands of jobs over the next year as the biggest U.S. bank by assets seeks to contain expenses and sells businesses, said a person with knowledge of the plans.
The lender has been consolidating back-office support, cutting mortgage workers as home-loan volumes decline and reducing the ranks of tellers as more customers use automated channels, said the person, who asked not to be identified discussing personnel matters. The New York-based bank may cut more than 5,000 workers by next year, the Wall Street Journal reported Thursday, citing people familiar with the matter.
JPMorgan, which had 241,145 employees as of March 31, said in February it would pare $4.8 billion of expenses from its consumer- and investment-banking divisions. Banks have made cost cuts a priority as revenue stagnates in a prolonged era of low interest rates that has suppressed interest income.
JPMorgan eliminated about 6,000 jobs in the 12 months ended March 31, according to an April filing. The number of total employees may hold steady over the next year if business conditions allow hiring in areas including wealth management, the person said.
Bank of America Corp., the second-biggest lender, will have to reduce expenses further in its markets division unless revenue begins to improve, Chief Executive Officer Brian Moynihan said Wednesday.
“We’ll have to keep working that expense base down,” he said at a conference in New York. “We’ve got to probably work it down again in the next couple of years if the business stays where it is.”