The latest windfall of housing market cooling off: JP Morgan Chase (NYSE: JPM) employees. The investment bank is reportedly laying off or reassigning around 1,000 positions in its mortgage unit.
Around half would be redeployed to different business divisions while the rest are expected to be laid off, according to Bloomberg sources familiar with the matter.
In response, a company spokesperson said that staffing decisions “was a result of cyclical changes in the mortgage market.”
“We were able to proactively move many impacted employees to new roles within the firm, and are working to help the remaining affected employees find new employment within Chase and externally,” said Ashlei Bobo, a spokeswoman for Chase Home Lending.
Based on its latest SEC filing, the company has 273,948 employees as of January 2022.
Borrowing rates have been at record highs in recent months. The US Federal Reserve recently increased interest rates by 75 basis points to address the soaring inflation, the biggest hike in almost 30 years.
Home sales in the US fell for the fourth consecutive month in May, shrinking by 3.4% month-on-month and 8.6% from the same period last year. The median home price point has also breached the US$400,000-mark for the first time in May–retailing at US$407,600, up 14.8% from last year.
JP Morgan last traded at US$115.18 on the NYSE
Information for this briefing was found via Bloomberg and National Association of Realtors. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.