JP Morgan Chase Jumps Into The Layoff Bandwagon
Layoff in Banking
The Holy Trinity of the street – is undoubtedly the trio of Goldman Sachs , JP Morgan Chase and Morgan Stanley – the Mecca for anything related to finance and banking. Layoffs in the banking sector have been common in the last quarter as revenues dropped in terms of annual and quarterly turnover – however JP Morgan Chase surprisingly didn’t layoff any of their almost 23k strong workforce. This however , was soon jinxed as the company laid off almost 500 mortgage employees from its payroll just after an hiring announcement for about 200 bankers for small scale banking operational roles.
Jamie Dimon – the CEO of JPMC , explained the seemingly contradictory move in a statement. “ The company works on the basis of flexible hiring and adjustments – the team analyses the data and stresses out the area where the most manpower is needed and we hire or readjust the work force accordingly. “
Layoffs being in the news with tech , entertainment and banking sector adopting the policy unanimously – lets dive deep behind the causes and examples that can be used to understand the problem in deep.
Why Does a Company Lay Off?
COVID Aspect of Layoff
Mass layoffs are obviously a consequence of excessive hiring during the 2020-21 fiscal year. Marred by COVID – the companies had to shut down branched and in order for the companies to function effectively they had to hire new individuals – creating a huge surge of employment – mainly in the IT and logistics sector – and the remote working culture seemed sustainable back then – since the operational cost of the companies decreased significantly.
Fiscal year 22-23 however – saw the companies going operational in situ once again – increasing operational costs and the increased workforce meant loss in company’s profit margin. Soon , filtering of employees on the basis of skills and the value they bring to the table started and it triggered layoffs.