J.P. Morgan Chase JPM +0.77% & Co. is cutting hundreds of technology support employees in its corporate and investment bank as part of an overall push to trim expenses as the bank battles sluggish revenue, a person familiar with the matter said.
The layoffs come as the nation's largest bank by assets continues to work on streamlining its technology systems, which became unwieldy after its acquisitions of Bear Stearns Cos. and Washington Mutual Inc. WMIH +0.74% during the financial crisis, this person said.
J.P. Morgan's revenue has fallen at least the past few quarters compared with the year-earlier period. For the most recent period ending June 30, revenue declined 3% to $24.45 billion compared with the year-earlier period, according to its earnings report.
The Wall Street Journal earlier reported J.P. Morgan's Chief Operating Officer Matt Zames has been working the past few months to cut expenses, which include relocating employees, such as technology support specialists, to less-expensive office space.
"We continue to be focused and diligent on managing expenses and operating as efficiently as possible across our businesses," Chief Financial Officer Marianne Lake said on the company's most recent earnings call in mid-July. Ms. Lake added that Daniel Pinto, who heads the corporate and investment bank, is "being as diligent as you would expect him to be given the environment."
"We're going to be smart about the actions we take on expenses in order to make sure that we protect the franchise," she said, "but that doesn't mean that we can't and won't be more efficient across the businesses."
Bloomberg earlier reported the employee cuts.
Authored by Emily Glazer via wsj.com.