JPMorgan Chase announced plans to cut 8,000 jobs, mostly in its mortgage and retail banking units, by the end of 2014, according to an Associated Press report. That follows about 16,500 job cuts in those units last year.
The cuts won’t affect other departments as profoundly; JPMorgan announced plans to add about 3,000 positions in other areas this year, the AP reported.
The eliminated employees will be further casualties of the end of end of the refi boom. The AP reported that JPMorgan and other lending giants saw double-digit drops in mortgage business last year as rising rates strangled a once-robust demand for refinancing.
“We're seeing much lower volumes as we're going through the first quarter of 2014," Gordon Smith, head of JPMorgan’s consumer and community banking business, told the AP. The company also said it would lose money on its mortgage business this year.
News of cuts to mortgage jobs is becoming increasingly common. Hundreds of job cuts have been announced in the last few weeks by companies like Bank of America, Nationstar and PHH, and thousands of mortgage employees have been handed their walking papers over the last year.
The country’s biggest bank will cut thousands of jobs in its mortgage unit this year as it tries to shrink operating costs in the face of lower refi volume.