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JPMorgan (JPM) Slashes Around 500 Jobs Across Divisions
JPMorgan Chase & Co. (JPM - Free Report) cut about 500 roles across departments in a fresh round of layoffs. This was first reported by CNBC.
Per a source familiar with the matter, while the majority of the affected positions were in the operations and technology divisions, others impacted were spread across retail and commercial banking, and assets and wealth management.
This news comes following JPMorgan's plan to trim around 1,000 positions ( 15% of its total employees) from First Republic Bank, which it acquired earlier this month. These job cuts are part of the integration process.
Despite the layoffs, JPM has approximately 13,000 vacant positions. This shows that the bank is committed to seek skilled talents based on their specialization, which helps it to grow strategically.
Over the past year, shares of JPMorgan have gained 3.6% against a decline of 16.7% recorded by the industry.
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Currently, JPM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With the latest move, JPMorgan joins Wall Street firms like Bank of America (BAC - Free Report) and Morgan Stanley (MS - Free Report) , which are also slashing jobs as the overall investment banking (IB) performance has become weak amid a decline in total deal volume and deal values because of the constant rise in interest rates, the war between Russia and Ukraine, and rising inflation.
BAC intends to eliminate around 40 positions in its Asia region’s IB unit, per a Bloomberg report. The primary reason for this is the slump in dealmaking activities across the industry. Nonetheless, the company plans to relocate these bankers to other divisions.
Likewise, the continued slowdown in the IB business has prompted MS to initiate another round of job cuts. The company has decided to cut 3,000 jobs in the second quarter of 2023, according to a source familiar with the matter.
Amid the tough economic environment, a slowdown in deal-making has prompted MS to consider its headcount.