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The Goldman Sachs Group, Inc. (GS) - free report >>
JPMorgan Chase & Co. (JPM) - free report >>
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JPMorgan (JPM) Cuts 20 IB Jobs in Asia Amid Muted Deal Flows
Amid muted environment for global merger and acquisition deals, JPMorgan Chase & Co. (JPM - Free Report) made fresh round of layoffs in Asia, per a Bloomberg article. People familiar with the matter stated that the firm cut around 20 investment banking (IB) jobs.
Per a source familiar with the matter, the New York-based firm made the workforce reduction on Tuesday across the region. This reduction mostly affected junior staff at associate and analyst levels in sectors including consumer, healthcare and private capital markets.
Previously, it axed 500 roles across various departments and about 30 IB jobs in Asia-Pacific in May and February, respectively.
JPM also laid off workers in First Republic Bank in May. It took over the collapsed bank and announced layoffs affecting 15% of First Republic Bank’s workers. Those job cuts were a part of the integration process.
Such cost containment actions are necessary for JPMorgan as the top line still remains under pressure given the hovering recession fears in the near term. Though JPM’s IB fees plunged 59% in 2022 and 18% in first-quarter 2023, it is likely to rebound and grow at a decent pace once the macroeconomic situation improves.
JPMorgan’s shares have gained 8.4% over the past six months against the industry’s fall of 4.6%.
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JPM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Apart from JPMorgan’s efforts to survive the deal slump through slashing jobs, firms like The Goldman Sachs Group, Inc. (GS - Free Report) , Citigroup (C - Free Report) and Morgan Stanley (MS - Free Report) have made similar moves.
Last week, per the Reuters article, GS is eliminating more than 30 IB positions. Financial News stated that C is likely to cut 30 investment IB jobs, and 20 more in its corporate banking unit in London.
Also, last month MS considered cutting around 7% of jobs in the Asia-Pacific region (excluding Japan). This is part of the broader 3,000 IB job cuts announced by the company.