JPMorgan is cutting about 500 employees across its various departments, according to someone familiar with the situation who asked not to be identified discussing personnel matters. The source said layoffs would affect employees across the bank’s main businesses — consumer, commercial banking, asset, and wealth management — as well as technology and operations. The cuts come even as the company seeks to fill about 13,000 open positions.
The New York-based bank, considered a systemically important institution by the U.S. financial stability regulator, also focuses on its cost structure. During the fourth quarter, which ended March 31, the company slashed its operating expenses by 24% to $3.4 billion and cut capital spending by 7% to $865 million. JPMorgan reported quarterly earnings that beat expectations, helped by a release of about $1.8 billion in loan loss reserves.
Its revenue was also higher than expected, led by its investment banking business and its physical commodities business sale to Mercuria. The bank’s total assets were nearly $4 trillion at the end of the first quarter, making it one of the largest banks in the world.
But the company still needs profitability and faces a challenging environment. As the economy weakens and interest rates rise, many consumers will have less money to spend and more debt to pay down. So JPMorgan is trying to adapt by focusing on its core strengths and reducing costs, including cutting back on hiring.
On Tuesday, Chief Executive Jamie Dimon said the company was laying off staff because of the “unprecedented economic headwinds.” He added, however, that he would not cut jobs “just to get rid of people,” adding, “You can adjust compensation in ways that aren’t as painful as firing people.”
In addition to hiring, JPMorgan has been slashing costs, such as cutting back on travel and canceling its annual bonus payout to managers. The bank is also implementing new work rules that require senior executives to be in the office at least five days a week.
JPMorgan, which employs 296,877 workers, was the largest U.S. lender in 2023. It provides banking, investment, and financial services to consumers, small and large businesses, institutional investors, government agencies, and other clients worldwide. Its consumer & community banking segment provides deposit accounts, credit cards, mortgages, auto loans, and other financial services to households and individuals. Its corporate & investment bank segment provides securities brokerage, financing, advisory, risk management, and other services to corporations and governments.
The company’s headquarters are at 383 Madison Avenue in Midtown Manhattan, New York City, NY. Its stock is listed on the NYSE and is part of the Dow Jones Global Select Index. The common stock is traded on the London and Tokyo stock exchanges. Its shares are traded under the symbol JPM. JPMorgan is considered a Fortune 100 company component of the S&P 500 Index.