In a bid to streamline its technology platform,
JPMorgan Chase & Co.
) has decided to cut hundreds of technology support jobs in its
corporate and investment bank (CIB) division, per a
Wall Street Journal
report. As part of the downsizing process, jobs will be cut in New
York, Chicago, Tampa and Dubai operations.
Notably, the New York-based bank has been pruning its technology
systems for quite some time. The acquisitions of Bear Stearns and
Washington Mutual Inc. during the financial crisis period had put
the bank in a spot of trouble and might have forced it to this
unsavory move. Further, the sustained lull in the trading business
has added to the woes.
Over the past few quarters, net revenues of JPMorgan have declined
on a year over year basis. In second-quarter 2014 ended on Jun 30,
net revenues declined 3% year over year to $24.5 billion. Again,
net revenue from the corporate and investment bank unit slipped 9%
year over year to $9.0 billion. This decline in revenues might have
paved the way for JPMorgan's decision to curtail its workforce.
JPMorgan had already indicated a job slash nearly a month and a
half ago. In case of a persistent lull in the trading business, the
bank had hinted, a large-scale pink-slip handout might take place
in the Investment Banking division, with compensation levels going
down as well.
JPMorgan currently holds a Zacks Rank #3 (Hold). Some better-ranked
banks include Comerica Inc. (
), Associated Banc-Corp. (
) and PrivateBancorp, Inc. (
). All these stocks hold a Zacks Rank #2 (Buy).
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