Markets
BAC

JPMorgan to Shift UK Technology Staff: Will it Save Costs? - Analyst Blog

A close up of a screen.
Credit: Shutterstock photo

In sync with its plans to contain expenses and improve operational efficiency, JPMorgan Chase & Co.JPM intends to shift its technology staff out of UK headquarters. Nearly 350 employees will be relocated to the company's regional centers in Bournemouth and Glasgow from London's Canary Wharf by 2017 at the earliest.

JPMorgan employs roughly 4,500 people in tech-related roles across Europe, with majority based in UK. Specifically, the bank's Bournemouth office has approximately 1,000 technology staff, while over 800 persons work at Glasgow office.

Relocation to regional hubs is part of JPMorgan's wider plan to narrow down the scope of technological work at its London headquarters to basically important skill roles or internal customer-dealing jobs. Therefore, only those tech staffs that require interaction with the bank's operations including trading floor will remain at the London office, while other employees will be relocated.

As JPMorgan attempts to enhance efficiency and continues to manage cost prudently in the Corporate & Investment Bank ("CIB") segment, we believe this relocation will support its expense-saving initiatives. At the latest Investor Day conference in Feb 2015, Daniel Pinto, the chief executive of CIB, had drawn up extensive plans to lower the segmental expenses by $2.8 billion to reach $19 billion by 2017. Of this total amount, nearly $1 billion of savings is expected to come from technology and operational divisions.

Notably, despite its efforts to lower technology-related expenses, JPMorgan has also been investing heavily in tech-related hubs with an aim to focus on automated banking, which has been gaining ground over the past few years. This is also expected to save expenses in the long run.

Currently, JPMorgan carries a Zacks Rank #4 (Sell).

JPMorgan is not the only bank that is trying to control costs. Other major global banks including Bank of America Corporation BAC , HSBC Holdings plc HSBC and Barclays PLC BCS are striving to manage expenses prudently to improve overall efficiency.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

BARCLAY PLC-ADR (BCS): Free Stock Analysis Report

BANK OF AMER CP (BAC): Free Stock Analysis Report

HSBC HOLDINGS (HSBC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

BAC HSBC BCS JPM

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More