JPMorgan (JPM) To Cut 140 Switzerland Jobs To Reduce Costs

As part of its efforts to reduce costs, JPMorgan Chase & Co. (NYSE:JPM) is likely to cut as many as 140 jobs in Switzerland. The news was first reported by finews.com.

Most of JPMorgan’s employees in Switzerland work in Geneva offices and the cuts are expected to be concentrated in those offices. Some jobs in Zurich may also be affected.

Notably, the company has nearly 1,000 employees in Switzerland within wealth management, investment banking and back-office services.

Per people with knowledge of the matter, JPMorgan does not intend to cut the jobs through layoffs. Instead, the bank will shift jobs in other areas or execute the cuts through retirement or attrition. Mostly, the jobs are expected to be shifted to India or Scotland.

A spokesperson for JPMorgan said, “Switzerland remains an important growth market for J.P. Morgan, and we are committed to providing best-in-class advice and counsel to clients across the country. To best deliver on this commitment, we have taken a number of steps to operate more efficiently.”

The majority of the jobs, which will be affected, will likely be in the back office.

Like JPMorgan, Wells Fargo & Company (NYSE:WFC) is planning to lay off 700 employees from its Philippines branch to shift all the tech employees to limited locations.

Also, U.S. Bancorp’s (NYSE:USB) banking subsidiary, U.S. Bank, planned to lay off about 62 employees as it shuts down retail lockbox service and processing.

Further, in January, State Street Corporation (NYSE:STT) announced plans of shrinking its headcount by 750 in its Boston offices in 2020.

Notably, while JPMorgan has been continuously engaged in cutting costs, it has also been expanding its footprint in new regions by opening branches. The bank aims to enter 15-20 new markets by the end of 2022 by opening roughly 400 new branches.

In addition to enhancing market share, the strategy will likely help the bank grab cross-selling opportunities by increasing its presence in the card and auto loan sectors.

Shares of JPMorgan have lost 20.3% over the past six months compared with a 14.4% decline of the industry.

Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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