JPMorgan Could Slash 10,000 More Jobs [REPORT]

JPMorgan Chase & Co. (NYSE:JPM) could slash as many as 10,000 more jobs this year over and above previously announced layoffs, following a brutal shrinking of business and regulators prowling for blood, the New York Post reported today, citing company sources.

According to some analysts, the job cuts could even force CEO Jamie Dimon to exit the bank.

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Mounting job cuts

As reported earlier, revenues for fixed income, currencies and commodities (FICC) are now at the lowest point since the financial crisis, with the top 10 investment banks losing 15% year-on-year to just $80 billion in 2013 compared to $144 billion in 2009, and it could continue to fall by 13% – 18% this year due to a combination of lower levels of trade activity and tightening spreads that are returning to historical norms now that markets are finally stabilizing.

According to the New York Post, JPMorgan Chase & Co. (NYSE:JPM) anticipates revenue from trading, including fixed income and equities, to plunge 20% in the quarter — a hit of more than $1 billion to the balance sheet, by one estimate.

JPMorgan Chase & Co. (NYSE:JPM) said in February it would eliminate 8,000 jobs in consumer and community lending. It’s also been posting weaker trading revenues lately, exiting a 400-person commodities unit, and sharply scaling back its mortgage lending, as well as in other activities such as student loans. On Tuesday, the bank said it would lay off 155 employees in its Garden City, LI, mortgage department.

Last week, Barclays PLC (NYSE:BCS) (LON:BARC) outlined plans to cut 19,000 jobs, of which 7,000 would be at the investment bank, while 14,000 jobs would be cut across the group in 2014.

Increased regulatory scrutiny

John Aidan Byrne of the New York Post points out regulators slammed the brakes on JPMorgan Chase & Co. (NYSE:JPM)’s risky but often lucrative prop-trading operations. This hurt other lines, too, just as the bank anticipates the next move by lawmakers who have vowed to clean up Wall Street. The most recent: JPMorgan is said to be shutting accounts of past and present foreign government officials to save on compliance expenses.

Citing a JP Morgan employee, the New York Post reports: “The idea at JP Morgan is to combine the leftover commodities business with fixed income and currencies into the FICC business. People on the sell side here are definitely nervous.”