JPMorgan Chase & Co. (NYSE:JPM), the largest bank in the United States, is expected to complete its planned job cuts by the end of 2013.

JPMorgan banks

The retail chief of the bank said 15,000 total jobs in its consumer banking unit will be eliminated by the end of the year as part of its initiative in adjusting its operations due to the declining profitability of its home-lending business and fewer clients are applying for mortgages.

During the conference of institutional investors in Boston, Gordon Smith, chief executive of the Consumer & Community Banking unit of JPMorgan Chase & Co. (NYSE:JPM) said the bank has already eliminated 11,000 positions and plans to complete the reduction of an additional 4,000 jobs by the end of the year.

JPMorgan is increasing the use of electronic tools

According to Smith, the bank’s planned workforce reduction was implemented faster than expected. He explained that JPMorgan Chase & Co. (NYSE:JPM) is increasing the use of electronic tools such as advanced teller machines, online accounts, and mobile deposits to handle the basic transactions of consumers across its 5,652 branches. The strategy allows the bank to cut back on staff.

Early this year, JPMorgan Chase & Co. (NYSE:JPM) estimated that it would reduce around 13,000 to 15,000 mortgage jobs by the end of 2014. The Consumer and Community Banking unit includes branches, credit cards, and mortgage lending, and has 156,000 employees as of September 30 this year.

JPMorgan and other banks are cutting jobs

JPMorgan Chase & Co. (NYSE:JPM) and other banks such as Wells Fargo & Co (NYSE:WFC) are cutting jobs in the mortgage business because of weak demand for refinancing, low interest rates, and stricter regulations on fees. Wells Fargo & Co (NYSE:WFC) also eliminated thousands of jobs in its mortgage business this year. The banks are facing increased pressure from investors to reduce expenses because of declining revenues.

The Community and Consumer Banking unit of JPMorgan Chase & Co. (NYSE:JPM) streamlined its business and got rid of some products and clients to be able to comply with regulations. The bank exited its co-branded business debit cards, gift cards, Canadian money orders, credit insurance, identity theft protection, and student lending businesses.

Relationship with foreign clients

Smith said the bank also dropped its relationship with some foreign clients and “politically exposed persons” in other countries.

JPMorgan Chase & Co. (NYSE:JPM) is adding branches in California and Florida. According to Smith, employees in new branches are fewer with more electronic kiosks.