Widespread layoffs have hit the mortgage industry hard, and big banks and major corporations are not immune.
JPMorgan announced on Thursday that it was laying off hundreds of employees due to rising mortgage rates amid a troubling housing market plagued by inflation.
Though it was not disclosed how many employees will be let go, Bloomberg revealed that approximately 1,000 total employees will be impacted, with almost half being moved into other divisions within the company.
"Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan Chase spokesperson told Reuters. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."
By the end of 2021, the bank was estimated to employ around 271,025 total employees.
JPMorgan Chase joins the ranks of real estate companies Redfin and Compass, both of which announced mass layoffs earlier this month as the housing market slows down.
Each of those companies trimmed staff by 10% and 8%, respectively.
"I'll spend the rest of my life wondering how I could've avoided these layoffs. What's most important now is treating the people leaving with humanity and respect," Redfin CEO Glenn Kelman said at the time.
JPMorgan Chase & Co was down just over 25% at market close on Thursday.
FAQs
The company spokesperson said JPMorgan Chase Bank added 17,000 jobs last year, on top of 11,000 open positions. It announced plans in 2022 to lay off hundreds of employees in the mortgage department. The head count at JPMorgan has grown 21% since the pandemic in 2020, its annual report said.
What are the effects of mass layoffs? ›
Finally, layoffs can have an impact on the morale of the remaining employees. When employees see their colleagues laid off, it can lead to feelings of uncertainty and anxiety. This can lead to decreased productivity and engagement, which can in turn impact the company's bottom line.
Are more layoffs coming 2024? ›
Among other sectors, a Feb. 1 report by Challenger, Gray and Christmas, an outplacement company, shows the financial industry has had the most job cuts so far in 2024 with a total of 23,238 in January. That's the highest monthly layoffs among financial companies since September 2018.
Why are banks laying off employees? ›
As dealmaking dried up and demand from borrowers softened last year, banks laid off employees or stopped replacing those who left. JPMorgan Chase (JPM. N) , opens new tab, the nation's largest lender, bucked the trend by bolstering its ranks for a third straight year.
Will JPMorgan go under? ›
The Probability of Bankruptcy of JPMorgan Chase & Co (JPM) is 3.7% . This number represents the probability that JPMorgan will face financial distress in the next 24 months given its current fundamentals and market conditions.
How often do JPMorgan employees get paid? ›
Chase pays employees on a bi weekly basis.
Who is most affected by layoffs? ›
Remote workers and middle managers are most likely to get let go during layoff season, experts say
- Major US companies have laid off thousands of workers in a bid to improve efficiency and cut costs.
- Remote workers and middle managers are often more vulnerable to layoffs, experts say.
The workers who feel most at-risk include those in product management, quality assurance, marketing, finance, and IT roles.
What industry is facing major layoffs? ›
A slew of companies across the tech, media, finance, and retail industries made significant cuts to staff in 2023. Tech titans like IBM, Google, Microsoft, finance giants like Goldman Sachs, and manufacturers like Dow all announced layoffs. This year is looking grim too. And it's only April.
Will layoffs continue in 2024 in usa? ›
Although 2024 began with much optimism, layoffs are still rife, with over 74,000 workers having been laid off from 255 companies.
Subtle signs that layoffs are coming
- Exciting projects are going to the “other guy.” ...
- Nonessential budgets are being reduced or cut. ...
- New products or expansions are being postponed. ...
- There's a heightened sense of belt-tightening. ...
- There's a merger or acquisition. ...
- You're being kept out of the loop.
Amazon has over the past months laid off hundreds of staff in divisions, including its Prime Video service, healthcare business and Alexa voice assistant unit, as big technology firms extend their massive job cuts over the past two years into 2024.
Who is laying off in 2024? ›
What companies experienced massive layoffs in 2024? Who's making cuts so far
- UPS cuts 12,000 jobs worldwide. ...
- Microsoft to layoff 1,900 workers. ...
- eBay eliminates about 1,000 jobs. ...
- American Airlines to lay off 656 employees. ...
- Wayfair lays off over 1,600 employees. ...
- Twitch cuts 35% of workforce. ...
- Google eliminates hundreds of jobs.
Roles slated to disappear include branch managers, call center employees and tellers. Artificial intelligence, cloud computing and robots will play a larger role in daily banking functions like taking payments, approving loans and detecting fraud.
Which banks are laying off employees in 2024? ›
The investment bank will trim positions in its wealth management unit, according to a person familiar with the matter.
How stable is JPMorgan Chase? ›
Credit Ratings
| Moody's | S&P |
|---|
| Outlook | Stable | Positive |
| Long-term issuer rating | Aa3 | A+ |
| Short-term issuer rating | P-1 | A-1 |
In 2019, the number of employees at J.P. Morgan AG increased compared to the previous year, from 305 to an average of 361¹. The staff turnover rate was the same as last year at 12%, but still within our target range of 8% – 12%. 22% of the total number of employees took advantage of flexible work arrangements.
Is JPMorgan Chase a good employer? ›
Ratings distribution
J.P. Morgan has an employee rating of 4.1 out of 5 stars, based on 20,797 company reviews on Glassdoor which indicates that most employees have an excellent working experience there.
