JP Morgan Cuts 19,000 Jobs

JP Morgan Chase has announced that it is cutting some 19,000 jobs from its mortgages and community banking.

JP Morgan Chase chief executive officer Jamie Dimon said the job reduction is being done to help trim costs. The job cuts will start by end of December until the end of 2014. Up to 15,000 jobs would be reduced from the mortgage unit while 4,000 jobs will be cut from the community banking.

The 19,000 jobs make up 7.3 percent of the lender’s total headcount.

Dimon is focused on reducing expenses to boost and maintain the company’s income for the next three years.

While JP Morgan is axing some 19,000 jobs, the company said it may also hired people in other businesses.

JP Morgan’s shares decreased 0.3 percent in the latest trading day to reach US$47.54.

Its chief financial officer, Marianne Lake, said the company hopes to reduce its expenses by some US$1 billion this year. She added that net interest income would likely stay flat.