JPMorgan to Cut Additional 6,000 Mortgage Jobs in 2014

JPMorgan Chase announced Tuesday it plans to cut an additional 6,000 mortgage banking jobs in 2014 as the bank adapts to a continued spiral in loan demand.

The announced cuts come on top of an estimated headcount reduction of 11,000 last year, the bank revealed in an investor presentation. At this time in 2013, JPMorgan was shooting to bring the headcount down at its mortgage wing by 13,000-15,000 over the following two years.

Also set for the chopping block are about 2,000 jobs in consumer banking and other services. Altogether, the megabank expects to have approximately 260,000 in its employ at the end of the year.

The cuts are a necessary part of JPMorgan’s efforts to bring down expenses, which it plans to trim by about $2 billion in 2014 in its mortgage banking unit alone as origination costs rise and consumers show diminished interest in borrowing.

“Despite all the challenges and complexities, we are committed to being in the mortgage business and will adjust our business model to be successful over the long-run,” the bank said in its presentation.

Mortgage banking contributed about $3.1 billion to JPMorgan’s income over 2013, down from $3.3 billion in 2012, thanks to the year’s slower second half.

JPMorgan isn’t the only major bank reducing staff to cut costs. It was reported earlier this month that Bank of America is bringing its own headcount down, and Wells Fargo announced several cuts toward the end of 2013.