JPMorgan Chase is, reportedly, planning to implement additional job cuts in its mortgage division, due to reduced demand for mortgage refinancing activities.
The move is in addition to JPMorgan’s plan to cut 13,000-15,000 jobs due to fall in demand for home loans. The additional job cuts are expected to be over 2,000, reported the Financial Times.
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Sources familiar with the matter were quoted by the new agency as saying that the fresh round of job cuts is likely to be made known at JPMorgan’s annual investor day on 25 February 2014.
With over 250,000 employees, the JPMorgan is also planning to cut thousands of jobs in branches in the years ahead and concentrate on making use of new technology with fewer staff.
The ever increasing interest rates have also forced JPMorgan to cut many jobs over the last two years and close several branches.
CLSA Securities analyst, Mike Mayo, told that the revenue growth was the worst in the last eight decades and banks must find new ways to control expenses.
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By GlobalData"The last two years have seen the most branch closings in history," Mayo added.
According to data by the Federal Deposit Insurance Corporation, the number of branches in the US declined from 99,544 in 2009 to 96,338 in 2013.
