(Reuters) - JPMorgan Chase & Co (N:JPM) is pushing for fresh cost cuts of about $200 million in the unit that oversees Sapphire Reserve credit card, the Wall Street Journal reported on Friday.
Senior JPMorgan employees have reviewed models questioning whether the card would make money and when, the Journal reported, citing people familiar with the matter.
Gordon Smith, head of JPMorgan's retail-banking business, this month ordered cost trims at the unit overseeing cards, according to the Journal.
JPMorgan, however, denied specific budget cuts for its Reserve credit card unit.
"We will neither confirm nor deny the number but there were no budget cuts specifically for reserve," said Patricia Wexler, managing director, communications, JPMorgan Chase.
"As a part of any planning process, we are always looking for ways to eliminate waste."
Sapphire Reserve card is popular among millennials, who are willing to pay the $450 annual fee for a sign-up bonus worth as much as $1,500 in travel, plus $300 in annual spending credits and more freebies.
JPMorgan's latest quarterly results showed rising sales volumes and weakening credit trends in its credit card business, consistent with other lenders.