JPMorgan Chase is the latest company to join the list of ongoing tech layoffs. The largest US lender is planning to cut 500 jobs this week. The layoffs are expected to affect employees across departments.
The layoffs will take place company-wide but it will focus mostly on technology and operations verticals, the report said quoting JPMorgan. The company regularly reviews its business and customer needs and continues to hire in other areas, a JPMorgan spokesperson said.
According to a Reuters report quoting CNBC, the cuts will affect the bank’s main business of consumer and commercial banking, as well as asset and wealth management. The bank has not commented.
Last week, JPMorgan said the app-based bank has already amassed 1.6 million customers and a total of £15bn in deposits.
First Republic Bank employees after acquiring the failed bank earlier this month.
First Republic became the largest U.S. lender to fail since 2008 after it was seized by regulators and sold to JPMorgan in early May.
JPMorgan's workforce stood at 296,877 at the end of the first quarter, up 8% from a year earlier, according to a filing.
Companies such as PayPal are having to react to the current economic climate, which is squeezing consumers and businesses alike. The underlying economic conditions, including high-interest rates, make fintechs focused on lending vulnerable to reduced demand.
Recent cuts include UK payments infrastructure financial technology firm Paddle, which has reduced its workforce of more than 350 by 8% as a boost to its business during the Covid-19 pandemic comes to an end.
Fintech firm LendingClub also announced cuts this year, with 14% of its workforce set to go as high-interest rates stifle demand for its lending services.
Verizon recently announced job cuts
Meanwhile, US telecom carrier Verizon also announced that it is planning to lay off employees. Verizon recently informed its customer service division employees about an impending restructuring, as reported by The Verge. During a meeting involving 6,000 employees, the company discussed its intentions to initiate employee layoffs.
However, it is possible that additional employees may be affected by this decision The report further indicates that the roles most likely to be impacted by these changes include positions related to customer experience. loyalty, and technology.