JPMorgan Chase & Co. (NYSE:JPM) is the latest financial institution to order another round of job cuts. The financial industry has been hit hard by job losses in recent years. On Monday, it was announced that Goldman Sachs Group, Inc. (NYSE:GS) was planning more job cuts.
Morgan Stanley (NYSE:MS) has already announced that it doesn’t plan to cut any more jobs any time soon, although we have yet to hear from Citigroup Inc. (NYSE:C) on whether it will follow through on the cuts it was said to be planning last month.
Today’s cuts from JPMorgan Chase & Co. (NYSE:JPM) were announced in a presentation on the bank’s website. CEO, Jamie Dimo,n said the bank will eliminate about 4,000 jobs this year, with the bulk of those jobs coming from the bank’s mortgage division. The number amounts to about 1 percent of the bank’s staff. A spokesperson for the bank told Reuters that most of the cuts will come through attrition.
Dimon is in the process of reducing the bank’s expenses by $1 billion in the wake of three consecutive years of reporting record net income. The bank also said it expects to have $28 billion in cumulative excess capital next year.
Bloomberg reports that JPMorgan Chase & Co. (NYSE:JPM) could see profits from its mortgage division fall this year because of increased competition and almost record low interest rates. In recent years, the bank’s mortgage profits have been one of the main drivers of its earnings.
Shares of JPMorgan Chase & Co. (NYSE:JPM) were trading mostly flat in pre-market trades Tuesday morning.
