JPMorgan planning to cut 3,000 more jobs this year

AP, NEW YORK

Sun, Nov 09, 2014 - Page 13

JPMorgan Chase & Co, the US’ largest bank by assets, is cutting 3,000 more jobs this year than previously planned in its card and mortgage business units.

The bank in February said that it was planning to eliminate about 2,000 jobs this year in its card, merchant services and auto unit, but has now said that it plans to have cut a total of 4,000 jobs in the unit by the end of this year.

JPMorgan is set to also eliminate more jobs in its mortgage unit, reducing up to 7,000 positions in that part of the bank, compared with an earlier target of 6,000.

The New York bank employs about 242,000 employees worldwide, according to its most recent earnings release.

The figures were disclosed in a presentation made on Friday by Chase Consumer & Community Banking chief executive officer Gordon Smith.

He was speaking at the BancAnalysts Association of Boston Conference in Boston.

JPMorgan, which reported net income of US$5.6 billion in the third quarter, is seeking to cut expenses at its consumer banking unit by US$2 billion between this year and 2016, according to the presentation.

The lender is cutting costs in its mortgage unit as demand for home refinancing has waned as rates have started rising.

The average US long-term mortgage rate for a 30-year loan rose to 4.02 percent, the Federal Home Loan Mortgage Corp said on Thursday. The rate was 3.41 percent in January of last year.

The bank is also trying to cut the costs through greater use of technology.

For example, by encouraging more customers to use electronic statements instead of paper ones, the bank estimates that it can save about US$100 million in paper and mailing costs by 2016.

Smith estimates that the cost of a mailing statement is about US$0.50, compared to a cost of less than US$0.01 for one that is sent electronically.