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JP Morgan Chase to lay off 5000 employees in US

JP Morgan Chase, the largest US bank by assets, is likely to remove more than 5,000 jobs to gain cost efficiencies by focusing on internet and mobile banking.

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The bank intends to trim nearly 2% of its workforce by next year. Almost 1,000 jobs have already been cut, reported The Wall Street Journal.

The bank plans to move away from human tellers towards technology in its 5,570 branches in the US.

The decision to remove 5,000 jobs would mean an average of one employee from each branch.

According to JP Morgan CEO James Dimon, each branch would get one financial adviser in place of two tellers.

All the four major businesses of the bank in corporate and investment banking, consumer and community banking, asset management and commercial banking, are likely to be affected with the decision.

The bank is reassigning some of its employees to other areas in the bank. Many teams have been asked to cut off 2-5% of their workforce.

This effort is a continuation of the bank’s cost-cutting efforts from last year that included moving employees to less expensive office spaces and revising third-party contracts.

The bank had announced in February that it intends to spare $4.8bn of expenses from its consumer and investment-banking divisions.It expects expenses to fall from $58.4bn in 2014 to $57bn this year.


Image: JP Morgan has already laid off 1000 employees. Photo: courtesy of official-ly cool.