NEW YORK—JPMorgan Chase Co. said it will be laying off more than 5,000 people as part of an effort to cut costs and become more efficient.
The reductions have already begun as part of an overall goal of reducing the bank’s workforce by 2% over the next year.
The cuts already have begun, according to people familiar with the decision, and are part of a broader industry move toward Internet and mobile banking. The bank will cut at least 2% of its current workforce in the next year.
JPMorgan Chase has 5,570 branches and said it is making the move as more of its customers rely on technology, such as mobile banking. The cuts, however, are coming across all of its major business units.
Analysts have noted that the reductions do not mean the bank’s overall headcount will actually shrink, however, as it hires approximately 40,000 people annually to fill open positions, and it is also adding a new class of analysts. In 2014 JPMorgan Chase cut nearly 8,000 jobs in its mortgage area. It has approximately 240,000 total employees.