Dive Brief:
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JPMorgan Chase is planning to slash hundreds of jobs in its consumer unit, according to a report by Bloomberg.
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The cuts represent about 1% of the division’s workforce, and employees will be given a chance to apply for other roles in the company, a source said. Affected employees are expected to be notified Feb. 6.
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JPMorgan’s consumer unit houses the bank’s deposit, credit-card, home and auto lending businesses and contributes nearly half of the bank’s revenue, Bloomberg reported.
Dive Insight:
JPMorgan Chase’s reported cuts could indicate last year’s trend is spilling over into 2020, as financial institutions pare their workforce to adapt to digital banking and global uncertainty.
More than 50 banks last year announced plans to cut a combined 77,780 jobs, the most since 91,448 in 2015, Banking Dive reported this month.
Investment bank Morgan Stanley began an effort in December to cut about 1,500 jobs, or 2% of its workforce, in what CNBC and Bloomberg alternately described as a year-end push for efficiency or a reaction to economic uncertainty.
Deutsche Bank, HSBC and Citi all announced planned cuts in the second half of last year.
JPMorgan’s reported cuts also come as the country’s largest bank undergoes a $20 billion expansion plan that includes opening 400 branches in as many as 20 new markets over the next four years. The bank in June said it planned to hire 3,000 employees in the expansion.
A JPMorgan Chase spokesperson declined Banking Dive’s request for comment.
