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JPMorgan (JPM) To Cut Up To 19K Jobs By End Of 2014

 February 26, 2013 10:21 AM
 


(By Balachander) JPMorgan Chase & Co. (NYSE: JPM) plans to slash about 4,000 jobs in 2013 as it aims to cut $1 billion in overall expenses, the lender said in a presentation.

The job reductions - representing about 1.5 percent of JPM's workforce - will occur mainly through attrition, spokeswoman Kristin Lemkau said.

The New York-based bank had 258,965 employees worldwide at the end of 2012.

The banking giant also plans to cut by as much as 19,000 jobs at its mortgage and community banking businesses by the end of 2014. JPM intends to reduce 13,000 to 15,000 positions at its mortgage business and 3,000 to 4,000 jobs at consumer & community banking business.

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As of 1/13, JPM's asset management business has $9 billion of allocated capital due to increased corporate allocations and expanding loan book.

JPMorgan Chase's fundamentals are extremely strong, with cross-sell revenue of about $14 billion and $3 billion of cost synergies, the bank said in a presentation to investors.

Expenses are "an important focus area for us," the bank said and it expects investment banking compensation to remain relatively consistent.

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Lat month, the lender posted a jump in quarterly earnings, reflecting strong lending and deposit growth. Earnings per share jumped 54 percent to $1.39 from $0.90 and net income too rose 54 percent to $5.7 billion in the fourth quarter. Net revenue on a managed basis was $24.38 billion, up 10 percent from the same period last year and down 6 percent from the prior quarter.

The stock, which has been trading in the 52-week range of $30.83 to $49.68, shed 0.59 percent to trade at $47.42 on Tuesday.

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