JPMorgan Chase (NYSE:JPM) is planning to cut 2,000 more jobs on top of 13,000 to 15,000 job cuts already planned, the Financial Times reported Monday. An announcement is expected on Tuesday.
The cuts are a results of a combination of less demand for mortgage refinancing and JPMorgan’s use of labor-saving technology. Online financial services allow the largest bank in the United States to rely less on physical locations and of course, humans.
JPMorgan’s new strategy will mean smaller branches and a heavier reliance on online banking. The company will display a “branch of the future” at its headquarters on Park Avenue in New York City on Tuesday.
JPMorgan Chase currently employs around 255,000 people and it made $17.9 billion in net income last year.
In 2009 there was a total of almost 100,000 bank branches across the U.S., but around 3,000 of those closed by 2013.
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JPMorgan Chase isn’t the only bank to trim down. Bank of America Corp. (NYSE:BAC) too has been cutting jobs to from day-to-day retail operations. It reportedly spends $3 billion a year developing technology like mobile banking.
Bank Of America eliminated more than 25,000 jobs in 2013 as a part of a plan it says will save $8 billion per year.
As of Monday, JPMorgan Chase has the highest stock price of all of the Big Four banks at $58 per share. Citigroup (NYSE:C) is around $49 per share, Wells Fargo (NYSE:WFC) is at $46 per share and Bank Of America sits at $16 per share.