JP Morgan Chase & Co to eliminate 19,000 jobs through 2014

JP Morgan Chase & Co yesterday said that it will eliminate around 19,000 jobs through 2014, including 4,000 this year, as the biggest US bank seeks to trim expenses by about $1 billion this year.

The surprise move comes a year after the bank's CEO, Jamie Dimon, said at an investor conference that he believed that the bank would continue hiring and opening branches, despite a sluggish economy.

But at the bank's investor conference yesterday, Dimon was was highlighting plans of reducing headcount by 4,000 and cutting costs by $1 billion over the course of the year.

His cost-cutting plans did not end there; Dimon went on to say that the cuts could accelerate next year and would see as many as 19,000 jobs being eliminated in mortgages and community banking, through 2014 and these job cuts would be offset by hiring elsewhere in the bank.

As of the end of 2012, the bank had 258,965 employees worldwide.

Although he did not spell out how much the bank would save by 2014 through headcount reductions, analysts believe that he is targeting a saving of around $3 billion.