No Job Cuts at JPMorgan - Analyst Blog
September 07 2011 - 8:45AM
Zacks
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
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