In response to the booming mobile banking business, JPMorgan Chase has revised its job-cutting forecast to include thousands more workers than previously predicted.
The bank, the nation’s largest by assets, will send 3,000 more workers home than what was originally predicted in February, a New York Post report said Saturday (Nov. 8). The head of JPMorgan’s consumer bank division, Gordon Smith, announced the revised figure on Friday.
About 2,000 additional job losses will hit the bank’s card and merchant services, meaning 27,000 cuts will be made by the end of 2014 over the past two years.
It’s all thanks to what Smith described as the “explosive growth” in mobile banking seen by JPMorgan. The lender has focused on cost cuts in recent years, an objective reinforced by mobile banking due to its ability to save money on personnel, like bank tellers.
The bank’s migration into the digital world is not unexpected. JPMorgan announced last month that it is planning to launch its own mobile payment app as it seeks to capitalize on the future of digital wallets.