Technology

JPMorgan to Trim Wealth Jobs After Periodic Review of Staff

JPMorgan JPM is set to cut hundreds of jobs in its asset and wealth management division, with most of the employees in support roles across the unit, per Bloomberg. These global reductions come after the company’s periodic review of staffing, per a person familiar with the matter.

Darin Oduyoye, a spokesman for the bank stated, “It is normal course of business for us to review our staffing annually to ensure appropriate levels, and adjust as necessary. We continue to invest in our business and talent, including hiring top advisers in key markets and expanding our product and service offering.”

Per a regulatory filing, JPMorgan’s asset and wealth management division had nearly 24,000 employees at the end of 2018.

It is almost like a ritual for most of the Wall Street’s securities firms to review and adjust staff periodically. It is done to recognize underperformers and dismiss them in order to give an opportunity to junior workers. Moreover, reviewing of staff helps firms to trim workers from one unit to expand another.

Recently, JPMorgan has announced that it plans to move roughly 300 investment banking employees from the London office to other hubs in the European Union (EU) in case of a no-deal Brexit. Apart from the company, several financial institutions are preparing for Brexit. In February 2019, Barclays BCS revealed plans to shift some equity and credit derivative sales jobs to Paris as it revamps operations ahead of Brexit. Likewise, Bank of America BAC and HSBC Holdings HSBC began relocating jobs to Paris.

Notably, JPMorgan, after consolidating its branch network for years to control costs and improve operating efficiency, has reinitiated its strategic expansion plan. The bank is aiming to enter 15-20 new markets by the end of 2022 by opening roughly 400 branches.

JPMorgan’s shares have gained 2% in the past three months compared with the industry’s growth of 7.4%.



Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


Click to get this free report

JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

Bank of America Corporation (BAC): Free Stock Analysis Report

Barclays PLC (BCS): Free Stock Analysis Report

HSBC Holdings plc (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.

Latest Technology 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