AM I NEXT? NO LOVE AT JPMORGAN CHASE (11/26/24)

Stephen Levine August 31, 2018

Am I Next? JPMorgan Chase lays off 100 in asset management group.

NOVEMBER 26, 2024 — 335 SAN FRANCISCO, CALIFORNIA EMPLOYEES

JPMorgan Chase & Co. has laid off 335 contract employees, 80 at its Financial Center, and 255 employees at its former headquarters.

The contract employees were former First Republic staff members on 18-month contracts following its acquisition.

JUNE 22, 2022 — MAJOR LAYOFF IN THE MORTGAGE SECTOR: 500+

The company has announced a major reduction in force driven by declining mortgage origination and refinancing activity plus rapidly increasing interest rates with the potential to curtail debt sales in the secondary market.

The reduction will impact hundreds of home-lending employees with layoffs and reassignments, currently estimated at more than 1000 employees, with half being transitioned to other positions.

reassigning hundreds more this week as rapidly rising mortgage rates drive down demand in what had been a red-hot housing market.

A company spokesperson noted, “Our staffing decision this week was a result of cyclical changes in the mortgage market. We were able to proactively move many impacted employees to new roles within the firm, and are working to help the remaining affected employees find new employment within Chase and externally.”

JANUARY 28, 2020 — WARNING OF IMPENDING CUTS

According to credible published sources, the bank will be cutting “hundreds” of positions in its consumer units which handle depository banking, credit-card operations, and consumer lending for homes and vehicles. A more formal announcement will be scheduled for February 6, 2020. There is growing concern that the cuts may be linked to increased offshoring of American jobs.

OCTOBER 14, 2018 — ANOTHER 400 EMPLOYEES GONE

The bank has announced that it will be reducing its headcount in its consumer mortgage operations. Layoffs in Phoenix, Arizona; Jacksonville, Florida; and Columbus, Ohio will total approximately 400 employees. The decision is based on reduced market activity and mortgage servicing operations. This is an area that has been highly affected by technology as consumers choose self-service options rather than requiring human assistance.

AUGUST 31, 2018 — Original Post…

JPMorgan Chase & Company, the largest bank and financial services company in the United States announced that they were responding to market shifts and were laying off 100 employees in the asset management division.

This type of staff recalibration is not usual and usually follows cost-cutting initiatives designed to improve performance and profits.

Of course, there was the usual corporate-speak from a company spokesperson who noted, “We routinely review our coverage model to ensure appropriate staffing levels across a variety of functions. Any reductions will be relatively small and will not impact our continued investment in client coverage and our business.”

One cannot help but wonder about the increasing impact of technology, especially applying artificial intelligence to portfolio management and maintenance. The ongoing review has already cost a number of employees their positions and it is likely to continue for the foreseeable future.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

NO LOVE AT BANK OF AMERICA (11/10/21)

Stephen Levine May 31, 2018

Am I Next? Layoffs -- Bank of America closing Pasadena California facility.

NOVEMBER 10, 2021 — 3,000 EMPLOYEES AT RISK IN BREA, CALIFORNIA

The Bank of America has confirmed that it is leaving its 637,503-square-foot operations/call center facility in Brea, California by July 2022 due to an early lease termination that will see the property be repurposed into an Amazon distribution center.

According to a company spokesperson, “We’ve been in discussions with the property owner and have agreed to exit the building in July 2022. This is all new and happening very fast. Our priority right now is to keep these employees in their current roles up until July. We don’t know where we’ll go after that.”

Many of the call center employees have been working remotely since the start of the COVID-19 pandemic, so their jobs may be preserved if the bank transitions to a smaller facility and further automates the call process using artificial intelligence response systems.

JANUARY 24, 2019 — CALL CENTER EMPLOYEES LAID OFF IN MARYLAND

Another call center consolidation will cost 74 employees their jobs at the bank’s Hunt Valley, Maryland call center. Operations will be transferred to other centers. It appears that technology is reducing the need for humans at call centers as clients turn to self-service websites, mobile devices, and chat messaging to interact with the bank.

MAY 31, 2018 — Original Post…

The Bank of America has announced that after 40-years it will not be renewing the lease on their Pasadena, California corporate office and will be laying off 575 employees. Some of the back-office customer service and processing support employees will be offered the opportunity to move to other bank facilities in Los Angeles, an enlarged Glendale facility, and Orange County.

There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?

NO LOVE AT U.S. BANK (UPDATED)

Stephen Levine May 16, 2018

FEBRUARY 4, 2020 — 62 LAYOFFS IN RETAIL LOCKBOX UNIT IN MILWAUKEE, WISCONSIN

The bank has announced the discontinuance of its lockbox services and will be disbanding the unit with 62 layoffs in Milwaukee.

According to a company spokesperson, “We are focused on creating value for those who rely on us, and we recognize that our industry is transforming as new payment channels emerge. With these changing dynamics, we announced early last year that we would be discontinuing our retail lockbox service and processing, and investing instead in digital payment solutions.”

OCTOBER 23, 2019 — U.S. BANK TO UNDERGO MAJOR RESTRUCTURING WITH CLOSURES, LAYOFFS, AND OUTSOURCING

According to a company spokesperson, the bank is reacting to increased digitalization of the customer interaction and is planning a major reduction in force.

The company has not announced a specific number of employees to be laid off, but informed individuals have put the number in the low thousands and include assistant managers, teller coordinators, including administrative and support personnel.

According to the Bank’s CEO, Andy Cecere, “We are telling some employees that we have made the difficult decision to eliminate their jobs because customer behaviors have changed.

“Many of the bankers affected by this have been here for a long time, and they have all contributed to our success. They are valued, and we appreciate everything they have done. However, we have to think about what is right for the long-term health of our company, and for all of our employees and customers. At the same time, however, we will be creating new jobs and making a significant investment in training for our consumer bank to better support customer needs now and in the future.”

IT support of branch activities will be outsourced to a third-party technology firm. The bank continues to shrink its branch footprint to compensate for declining walk-in traffic.

UPDATE: OCTOBER 24, 2018 — U.S. BANK ANNOUNCES 700 ADDITIONAL LAYOFFS

A spokesperson for U.S. Bank has announced that “changing conditions” are responsible for the layoff of 700 bank employees. The spokesperson refused to identify which employees would be laid off, their location, or their positions. However, they added that these layoffs are in addition to the 260 previous layoffs in Ohio.

Employees of the bank suggested that the layoff may have impacted 1,000 employees rather than just 700.

Original post…

Minneapolis, Minnesota-based U.S. Bank, the seventh largest bank (by assets) in the United States, has announced that it will be laying off 260 employees and closing its Bedford, Ohio mortgage and consumer banking office. Work will be transferred to other U.S. Bank facilities. The decision to shutter the facility was based on the management of their real estate portfolio.

A company spokesperson, Molly Snyder commented …

"After a strategic review of our real estate footprint, we have made the decision to close the U.S. Bank satellite office in Bedford, Ohio, when its lease expires this fall."

It has been reported that the bank has also embarked on a quiet “talent optimization” scheme that sees affected employees rewarded with a “separation package” in return for a signed NDA (Non-Disclosure Agreement) that prevents the employee from publicly commenting on the separation or the bank itself. It appears that this is the bank’s preferred modus operandi as it avoids adverse publicity and the necessity to file WARN (Worker Adjustment and Retraining Notification) notices.

While the bank appears to be helped by the rising Fed interest rates, it also appears that the bank’s mortgage origination and servicing income are below expectations. Perhaps as a result of management’s aversion to risk in the mortgage market in a questionable economy.