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JPMorgan Chase & Company is expected to cut an additional 3,000 jobs, including 1,000 in its mortgage banking operations. According to reports by the Associated Press and Bloomberg, the New York-based company is on track to cut 7,000 jobs from its mortgage operations by the end of the year. In February, the company announced plans to drop 6,000 mortgage-related employees. This latest round of layoffs follows last month’s announcement by CEO Jamie Dimon that the company’s mortgage banking profits fell by half in the first nine months to $1.26 billion from a year earlier, while revenue declined 25 percent.
An additional 2,000 jobs are being cut from the company’s credit card, merchant services and auto units.
Also on the JPMorgan chopping block are hundreds of technology-support employees within its corporate and investment bank, while job cuts and pay reductions are being planned in the investment bank. JPMorgan employs about 251,000 employees worldwide.
JPMorgan is also planning to trim the number back-office locations to 200 by the end of 2016, down from 325 in January 2013. The company attributed these cuts to the increased usage of mobile banking by its customers.
The news of the layoffs was made public today by Gordon Smith, CEO of Chase Consumer & Community Banking, during a speech at the BancAnalysts Association of Boston Conference in Boston.