JPMorgan to resist layoffs in 2012
The trend in the banking industry is toward more downsizing.
This was underscored powerfully by Citigroup's announcement that it will lay off 4 percent of the workforce, or 11,000 employees. In September, Bank of America announced that it would slash 16,000 jobs by the end of the year, as Project New BAC entered a new phase. JPMorgan Chase, however, wants the industry to know that there's much less doom-and-gloom within its ranks.
The company intends to avoid mass layoffs, according to Bloomberg. JP Morgan Chase is also letting it be known that the bonus pool for the corporate and investment bank will be 2 percent smaller this year. One analyst was quoted saying, "If the JPM bonus pool only shrinks 2 percent this year, then I'd say that those guys, and women, are the luckiest folks on earth. I expected much more shrinkage."
Indeed, the bank has weathered some nasty storms this year. JPMorgan generated a record $19 billion in net income in 2011 and is on track to generate nearly $21 billion this year, despite the $6.2 billion in losses attributable to the London whale hedges. All in all, it could have been a lot worse. It should be said that bank executives are keen to lower expectations to avoid any massive surprises when employees are given their numbers.
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