JPMorgan to Slash Consumer, Mortgage-Banking Jobs (Update2)
(Updated with more information, company statement).
NEW YORK (TheStreet) -- JPMorgan Chase (JPM) plans to cut 4,000 jobs in 2013 as it seeks to reduce $1 billion in expenses, according to a presentation to investors posted on its website.
The bank sees expenses falling from $60 billion in 2012 to a little over $59 billion in 2013.
A separate presentation on consumer and community banking shows a targeted headcount reduction of 13,000 to 15,000 in mortgage banking alone by the end of 2014, while consumer banking excluding mortgage banking would see a reduction of 3,000 to 4,000 jobs.
Kristin Lemkau, a spokeswoman for JPMorgan, said in an email that the net reductions at the company will be 4,000, as the bank will add jobs elsewhere to offset the reduction in consumer and mortgage banking. She added that the reduction in staff in consumer banking will come mostly through attrition. Compensation expenses at the investment bank is expected to remain consistent, according to the presentation. In opening remarks, CEO Jamie Dimon said the bank was growing market share in every segment. He touted the bank's brand, franchise strength, cheaper cost of funding and economies of scale. Cross-sell opportunities deliver about $14 billion in revenue, the bank said in its presentation. Dimon added that the bank intends to meet all its capital and liquidity requirements in 2013. CFO Marianne Lake and other top-ranking officials will be making presentations throughout the day. Dimon will be speaking again later in the afternoon and will take questions from investors. Presentations are available on the website. -- Written by Shanthi Bharatwaj in New York>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: tips@thestreet.com.
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