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JP Morgan Chase plans 17,000 job cuts by 2014

US-based JPMorgan Chase & Co is planning to scrap 17,000 jobs by the end of 2014, as part of its cost saving strategy to reduce expenses by at least $1bn per annum.

The planned head count reduction, which represents nearly 6.6% of the company’s overall workforce, will be implemented primarily in mortgage servicing and retail banking divisions.

Around 4,000 employees globally are expected to be reduced during the current financial year, while remaining 13,000 staff will go by 2014, largely in the mortgage group, the bank said.

The job cut announcement reflects that retail banking and mortgage operations in the US is still under pressure amid improving housing market in the country.

Justifying its employee’s reduction plan in retail banking division, the bank said that its hopes that the customer will use automated teller machines as well as online and mobile banking for day to day transactions.

According to an estimate, the US lender had 258,965 staff across its worldwide operations at the end of 2012.

The bank registered a net income of $21.3bn, for the year 2012, with an increase of 12% from last year, but its revenue stood flat at $99.9bn, largely due to sluggish US economy.