JPMorgan Chase (NYSE:JPM) will cut 5,000 jobs of its workforce next year as part of its initiatives to reduce costs and become more efficient, Wall Street Journal reported, citing people familiar with the situation.
Shares of JPMorgan slid 0.6 percent to $65.79 at 2:33 p.m. in New York. The stock is up 5 percent so far this year.
The most recent phase of layoffs began earlier this year and would eliminate at least 2 percent of JPMorgan's workforce, according to the newspaper. The bank has already cut at least 1,000 of those jobs, a source told Dow Jones.
JPMorgan—which has 5,570 branches—has moved to emphasize technology and rely less on human tellers. Its chief executive officer Jamie Dimon said recently that the bank's average branch would lose one employee over the next two years.
However, the cuts affect all of JPMorgan's major business units, the Journal reported.
The employees laid off or in consideration to be laid off range in seniority, from junior analysts up to managing directors who can often earn six- or seven-figure annual pay packages, people familiar with the bank told WSJ.
The company cut 7,900 mortgage jobs and left certain businesses last year. It has slimmed its workforce to about 240,000 employees, with cuts in 11 of the last 12 quarters, according to WSJ.
Still, JPMorgan hires about 40,000 employees annually, according to the report.
The number of total employees may hold steady over the next year if business conditions allow hiring in areas including wealth management, a person with knowledge of the plans told Bloomberg.
Last year, JPMorgan relocated employees to less expensive space. The bank also changed third party contracts as part of its cost-cutting measures. JPMorgan expects its expenses to decline to approximately $57 billion this year from $58.5 billion in 2014.
Bank of America (NYSE:BAC), the second-biggest lender, will have to reduce expenses further in its markets division unless revenue begins to improve, chief executive officer Brian Moynihan said on Wednesday.