JPMorgan To Slash Hundreds Of Jobs Across Consumer Division
JPMorgan Chase & Co. is expected to announce several hundred layoffs in the coming weeks, according to a Bloomberg source.
Layoffs could be seen across the company's consumer unit, which houses 50% of the bank's revenue. The most affected subunits could include auto lending, home mortgages, and credit cards.
The cuts come at a time when JPM recorded some of the highest profits ever with $36.4 billion, due to a 56% increase in stock and bond trading in the fourth quarter, after it single-handedly triggered the repo crisis, forcing the Fed to launch 'Not QE.'
The layoffs are expected to be announced on February 6th, the source said, adding that the cut will be about 1% of employees in the unit.
We noted Tuesday that JPM decided to keep annual bonuses flat across its investment bank segment for the 2019 year.
Banks around the world who are supposed to benefit from rising asset prices thanks to the central banks' injecting unprecedented liquidity into markets – unveiled last year, the most significant round of job cuts in four years.
Banks are slashing jobs at record speeds in response to a synchronized global slowdown and adoption of automation.
JPM has cut more than 7,000 jobs from the consumer unit in the four years through 2018, and it's likely the cuts will continue.
Fifty banks in 2019 slashed upwards of 78,000 jobs, the most since 91,448 announced in 2015.
Morgan Stanley last month fired 2% of its workforce, or approximately 1,500 workers, due to slowdown fears.
Earlier this month, Barclays Plc slashed 100 senior staff at its investment bank unit. These cuts were primarily made in Europe and the U.S.
Goldman Sachs has had its fair share of layoffs and pays reduction in 2019.
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