JPMorgan to Slash Tech Support Jobs Amid Trading Worries - Analyst Blog


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In a bid to streamline its technology platform, JPMorgan Chase & Co. ( JPM ) 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. ( CMA ), Associated Banc-Corp. ( ASBC ) and PrivateBancorp, Inc. ( PVTB ). All these stocks hold a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: CIB , JPM , CMA , ASBC , PVTB

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