JPMorgan Chase to eliminate 8,000 jobs

JPMorgan Chase yesterday announced plans of eliminating 8,000 jobs this year as part of its plan to reduce $2 billion in consumer banking costs by the end of 2016.

JPMorgan, the biggest bank in the US, will cut 2,000 jobs in credit card services and bank networks and another 6,000 jobs at mortgage banking unit.

The latest job cut comes on top of 7,000 jobs eliminated at the JPMorgan's branch level over the past two years.

The 8,000 job cuts revealed yesterday at the bank's investors-day conference are equivalent to about 3 per cent of JPMorgan's total workforce of 251,000.

But the bank will add about 3,000 jobs across the company this year and overall, its headcount is expected to fall by 5,000 in 2014.

JPMorgan reported net earnings of $17.9 billion in 2013, down from $21.3 billion in 2012.

The New York-based lender's earnings took a hit because of paying billions of dollars to settle series of legal charges, the biggest being the $13 billion deal to settle regulatory charges related to its handling of mortgage-backed securities in the years leading up to the 2008 financial crisis. (See: JPMorgan in tentative $13-bn settlement with US regulators)