(JPM) JPMorgan Chase & Co Anticipates No Job Cuts

On Tuesday, Reuters reported quoting Mr. Jes Stanley, JPMorgan Chase & Co.’s (JPM) investment banking Chief Executive, that the company has no plans to retrench employees in the near future.

During the first half of 2011, JPMorgan recorded compensation expenses of $15.8 million, up 6% from the corresponding prior-year period. However, Mr. Stanley stated that the company has been trying to manage expenditures by lowering other operating expenses rather than cutting jobs.

This move is, however, in stark contrast to what the other peers of JPMorgan have been announcing recently. Several banks announced layoffs in July and August to tide over the ever increasing expenses.

In order to improve operating efficiency, last month, UBS AG (UBS) declared 3,500 job cuts, Royal Bank of Scotland Group plc (RBS) announced  trimming of 2,000 positions, and Bank of America Corporation (BAC) planned to retrench 3,500 employees. Also, Bank of New York Mellon Corp (BK) and HSBC Holdings PLC (HBC) announced 1,500 and 30,000 layoffs, respectively.

In July, State Street Corp. (STT) too had stated that it would reduce 850 technology jobs through layoffs and outsourcing.

The recent job data release on Friday stated that the there was no job creation for the month of August. So, at this time when all the banking companies are trying to streamline their expenses through workforce reduction, this statement from JPMorgan comes on a positive note that will certainly boost investors’ confidence in the stock.

JPMorgan currently retains its Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. Moreover, considering the fundamentals, we are maintaining a long-term “Neutral” recommendation on the stock.

BANK OF AMER CP (BAC): Free Stock Analysis Report

BANK OF NY MELL (BK): Free Stock Analysis Report

HSBC HOLDINGS (HBC): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

ROYAL BK SC-ADR (RBS): Free Stock Analysis Report

STATE ST CORP (STT): Free Stock Analysis Report

UBS AG (UBS): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | | | | | | | | | | | | | Financial | Money Center Banks

RSS feeds: BAC | Bank of America Corporation | BK | HBC | HSBC HLDGS PLC ADS | JPM | JPMorgan Chase & Company | RBS | Royal Bank of Scotland Group plc | State Street Corporation | STT | The Bank of New York Mellon Corporation | UBS | UBS AG | Financial | Money Center Banks |

Other Posts by | RSS Feed for this author