JPMorgan Set To Cut 1% Of All Jobs In Consumer Unit: Report

Investment bank JPMorgan Chase & Co. JPM is cutting about 1% of all its staff in the consumer unit to reduce costs, Bloomberg reported Tuesday.

What Happened

Bloomberg didn't provide the exact number of employees at risk of losing their jobs but said the number would be in the hundreds. The employees would have a chance to apply for other roles in the bank, people familiar with the matter told the publication.

JPMorgan will notify the staff about the cuts on February 6, according to Bloomberg. The consumer-facing unit deals primarily with credit cards, deposits, and home and auto loans.

The bank reported net revenue of $14 billion from consumer & community banking in the fourth quarter of 2019, up 3% year-on-year.

Why It Matters

The move comes less than a week after it was reported that the Wall Street giant had increased the pay of its CEO Jamie Dimon by 1.6% to $31.5 million, following the bank's record earnings in 2019 on the back of consumer banking.

JPMorgan isn't the only bank cutting jobs to reduce operational costs. As reported by Bloomberg earlier, banks across the globe announced plans to cut about 77,780 jobs in 2019.

Germany's Deutsche Bank AG DB alone said it would cut 18,000 jobs by 2022.

Price Action

JPMorgan's shares closed 1.82% higher at $134.43 on Tuesday. The shares were mostly unchanged in after-hours trading.

Photo Credit: Public domain photo via Wikimedia.