Business

JP Morgan to cut 8,000 jobs in mortgage and retail

  • 25 February 2014
  • From the section Business
JP morgan exterior
Image caption JP Morgan's mortgage business has been hit hard by rising interest rates in the US

JP Morgan announced it will cut 8,000 jobs in its mortgage and retail banking sections as those businesses continue to shrink.

The bank had previously announced about half of those cuts, but said it was eliminating more positions to save costs.

Last year, JP Morgan laid off more than 16,500 bankers in those areas.

It has been hit particularly hard by a decline in mortgage refinancing due to rising interest rates.

Interest rates have been rising in the US as the Federal Reserve begins to slow down its stimulus efforts.

The cuts will be divided, with about 6,000 bankers being laid off in its mortgage division. Another 2,000 positions will be eliminated in its retail division, as the bank switches to more automated machines.

JP Morgan said it also planned to hire some 3,000 bankers, bringing the firm's total employment to about 260,000 by the end of 2014.

The bank reported profits of $17.9bn (£10.7bn) in 2013, down from $21.3bn a year earlier.

Profits have been hurt by a wave of settlements over mismanagement relating to the housing crisis, the "London Whale" trading loss and manipulation of the Libor benchmark interest rate, among others.

The cuts were announced as part of JP Morgan's annual investor day, which continues throughout the day on Tuesday.