JPMorgan Chase has begun notifying employees of job cuts, purportedly the first in a series of planned reductions this year.

Some 1,000 employees are expected to be laid off in February, according to an initial report by Barron’s.

A spokesperson for the bank described the move as part of the “regular management of the business,” emphasising that JPMorgan still has 14,000 open positions.

“We continue to hire in many areas and work hard to redeploy impacted employees,” the source said.

A pattern of workforce adjustments at JPMorgan

This round of layoffs follows a familiar pattern. In February 2023, JPMorgan let go of hundreds of mortgage employees despite earlier hiring sprees.

The bank has long engaged in annual performance-based culling; relocating roles to lower-cost states; or offshoring certain operations to maintain efficiency.

Some industry observers, however, suspect that recent workforce decisions have been about more than just restructuring.

In January, just before these job cuts, JPMorgan scrapped its hybrid work policy and required employees to return to the office full-time.

The move sparked speculation on social media that the return-to-office mandate was a strategic nudge – one designed to encourage voluntary departures and soften the impact of outright layoffs.

Employee morale at the US bank may have also been suffering for a while because of the company’s purported adjustments to pay raises and bonuses.

As People Matters Global reported last month, staff have been “unhappy” with their annual bonuses falling below previous rates and wider industry standards.

Yet, dissatisfied employees have held back on speaking against receiving lower rates and incentives out of fear of being fired.

One employee said: “I’m in a position where pushing back would likely be detrimental.” 

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Strategic cuts despite strong performance

While layoffs are never welcome news, they are not uncommon in the banking world, where firms regularly trim underperforming units or consolidate roles made redundant by automation or restructuring.

JPMorgan, which ended 2024 with a workforce of over 317,000, is no stranger to such adjustments. But more cuts are expected later this year, according to a source familiar with the matter.

What makes these layoffs particularly striking is that they come at a time of unprecedented financial success for the bank.

In 2024, JPMorgan reported its highest-ever annual profit, buoyed by a resurgence in Wall Street dealmaking and fundraising.

In the last quarter alone, the bank generated nearly US$43.74 billion in revenue, with net income soaring 50% year-over-year to reach $14 billion.

Despite a shifting economic and regulatory landscape under the Trump administration, the bank’s leadership remains confident.

COO Jennifer Piepszak this week said investment banking fees had already seen double-digit percentage growth in the first quarter, as clients grow more optimistic about the economy.

JPMorgan is banking on efficiency

JPMorgan’s headcount remains substantial, but its approach to workforce management reflects the ongoing trend of balancing expansion with cost discipline.

Unlike the drastic job cuts seen in previous downturns, today’s layoffs appear more targeted, aimed at streamlining operations rather than responding to financial distress.

As seen in the case of JPMorgan, however, job security in banking is never guaranteed even in times of record profits.

With market conditions continuing to adjust and the bank refines its structure and operations, further reshuffling would still be likely in the months ahead.