Why is JP Morgan Chase laying off?

Chase thUn27
Sep 4 125 Comments

Why is there a hiring freeze and layoffs when JP Morgan has set record profits?

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TOP 125 Comments
  • As a technologist, the most important thing to know about JPMorgan is that it views technology talent as fungible expenses to be minimized at all costs. This is why management pushes work to lower cost centers domestically and off shore, even if that decision sacrifices business value and/or product quality. It's also why devops / SRE and choice seating are being imposed on more and more teams. Tech management's top priority is reducing costs because their bonuses are a function of the "profitability" of their team.

    In summary, tech management has two and only two priorities: deliver only the minimum amount of work required to stay green on scorecards, and cut costs as much as possible.
    Sep 5 19
    • Morgan Stanley
      summer_gen

      Morgan Stanley

      PRE
      Microsoft
      summer_genmore
      Meeting room/team location/conference call(for distributed teams), whatever works best for you. Colocation is still a thing - people prefer to stick to "their"(now in quotes) desks
      Sep 5
    • Lol most tech teams at jpm aren't agile so there is no standup.

      And another lol for thinking that jpm values co-located teams. JPM's only priority with respect to team placement is minimizing costs. If the business is in NY but its cheapest to put the tech team in Bangalore, even if the time zone difference makes it impossible for tech to work with the business to gather requirements and develop and test -- guess where the tech team will be located.

      Also, every jpm tech worker is a "temporary worker". If you're not in the business, then you're fungible.
      Sep 7
    • Chase / Eng Sha_
      I know. Have seen all this BS ... But we had a few teams who were anal about their standup; so anal that they'll stay in meeting rooms for hrs instead of 15 mins. There is a whole floor like that because the VP is an arrogant mule, he wanted the team to work like mules or else that vp mule will fire the rest of the mules.
      Sep 7
    • Morgan Stanley
      summer_gen

      Morgan Stanley

      PRE
      Microsoft
      summer_genmore
      Apparently morgan stanley and jp morgan have more similarities than just a name lol
      Sep 7
    • AIG / Strategy
      W Jan 120P

      AIG Strategy

      PRE
      Deloitte Digital
      BIO
      Counseling CxOs for AI-first strategy !
      W Jan 120Pmore
      Uber, Apple, and Google are moving labor to lower unit-cost locations.
      Sep 16
  • Apple
    TWB-tWBu16

    Apple

    BIO
    I’m a software engineer. Right now my job is focused on full stack web dev but I love everything related to tech
    TWB-tWBu16more
    People don’t hire or fire based on profits. They hire or fire based on available work.

    That’s why you don’t always see hires go up as profits go up. If there isn’t more work to do, they aren’t going to hire.
    Sep 4 0
  • Salesforce shanthi
    They probably automated a lot and have repeatable processes. No need for people.
    Sep 5 0
  • Chase / Finance
    Pv488

    Chase Finance

    BIO
    Asset & Wealth Management at JPMorgan Securities
    Pv488more
    Gotta pay for the new 270 Park HQ building somehow
    Sep 5 0
  • Citibank Llka03
    A company’s balance sheet doesn’t always tell you the story behind how a company views an employee’s contribution in driving its future growth. It doesn’t just apply to technology, but all sectors. No commercial banking firm is a tech company and be rest assured that tech employees would definitely be a point of focus at times of layoff. It’s just how things are built traditionally and not to do with profits.
    Sep 11 68
    • Compass LInR08
      Wow. You’re Indian aren’t you? Just figured it out. That explains everything. Lol
      Sep 12
    • Citibank Llka03
      Ohhhk now from layoffs to stocks to Indian. You should be in movies.
      Sep 12
    • Citibank Llka03
      😜 wondering who this sham is I was talking to all this time. No wonder u have this much time.
      Sep 12
    • Compass LInR08
      Hahahahaha. Nailed it. Good night 😘
      Sep 12
    • Citibank Llka03
      Yep we know who got nailed n whose running so quickly 😜
      Sep 12
  • Chase / IT DaItguy
    The devops team I was part of in chase is being moved to offshore. And there is ask for headcount reduction at least 3%. Left chase last month and happy about decision. Work was really not good and I feel like having skills depreciated during employment with chase.
    Sep 5 2
    • Chase `\/©\/'
      Definitely feel like my skills are deteriorating
      Sep 7
    • Chase / IT DaItguy
      Agreed.
      Sep 7
  • Chase fgUe72
    A recession has happened every 8-10 years,it's currently a bull market im sure it's inevitable.
    Sep 9 2
    • Bloomberg Big-indian
      The central banks canceled the business cycle. Haven’t you heard?
      Sep 9
    • Chase fgUe72
      What you mean?
      Sep 9
  • Microsoft / Eng AmYe88
    Chase Seattle is hiring crazy for engineering
    Sep 5 1
    • Chase / Eng Sha_
      They will fire crazy too. Just wait.
      Sep 5
  • PwC bHXa81
    That’s probably due to the decrease in interest rates by Fed. That will impact their profitability forecast
    Sep 5 1
    • Chase / Eng Sha_
      Layoff rumor has was there since 5 to 6 months, became a reality just a few weeks ago.
      Sep 7
  • Bloomberg Big-indian
    Which area are the layoffs in? Not engineering I’m guessing.
    Sep 5 1
    • Chase KlTv28
      Engineering is actually going through layoffs as well.
      Sep 5
  • First Republic cyWT32
    Inverted yield curve
    Sep 5 0
  • Wells Fargo MissLady
    Yup the recession is coming and will be here in 2021 or 2022. All of the major banks are preparing to do many layoffs come next year. Some banks are closing down many international rep offices and cutting costs wherever they can.
    Sep 9 4
    • Chase
      ptgi36

      Chase

      PRE
      Neuberger Berman
      ptgi36more
      Keep dancing maybe one day it will rain
      Sep 9
    • Wells Fargo Tex_
      Not sure what that means. But that was a really weak attempt at trolling. How old are you 60? 😂🤣
      Sep 9
    • Chase
      ptgi36

      Chase

      PRE
      Neuberger Berman
      ptgi36more
      Just another dumb “it’s coming” comment, as if you can actually predict when it’s coming. People have been saying “it’s coming” for like 6 years. Keep repeating it until it comes true. You just look dumb to the rest of us.
      Sep 9
    • Wells Fargo Tex_
      Aw I look dumb to the rest of "you"? Oh let me guess, you work for Chase but don't really know much about economics, stress tests, and not noticing the same patterns that happened before the 2008 Financial Crisis. Again, how old are you 60? Are you even aware economic climates in the US or other countries?

      I could care less about what you or the "rest" of you think what is dumb.
      Sep 9
  • Bloomberg / Eng
    WPslayer

    Bloomberg Eng

    PRE
    Fidessa
    WPslayermore
    They know a recession is coming.
    Sep 5 0
  • Chase / Eng 8==D~
    Bc MDs and EDs have never written a line of code in their life.
    Sep 7 1
    • Chase / Eng Sha_
      Heck even some VPs acting like Ed's and MDs
      Sep 8
  • Compass LInR08
    Jamie’s contrarian bet on expanding their branch network is backfiring.
    Sep 4 0
  • Chase
    ptgi36

    Chase

    PRE
    Neuberger Berman
    ptgi36more
    Mostly it’s testing if teams can survive with low headcount. Tech was overbloated with contractors.

    The freeze right now is so when there is employee turnover, they want to measure performance of the team and see if they really struggle. If they’re able to pull off their responsibilities without too much issue, they don’t add to staff and use that money to hire people where it’s needed.

    I love all the conspiracy theories though.
    Sep 5 2
    • Chase / Eng Sha_
      Contractors were given a full-time positions which is good thing but managers from South (South India - no offense) took an advantage of the situation and made sure that their southi friends got a promotion while becoming fte. That took away the promotions from the deserving ftes who wont be promoted again next year. Majority of contractors are VPs now.

      But it's ok, you can live in your lala land and pretend that everything is a conspiracy theory.
      Sep 5
    • Chase thUn27
      OP
      Calling shananigins on that one
      Sep 6
  • Chase kQxw50
    Hiring freeze in NYC due to 270 park being torn down to rebuild in the next 5 years
    Sep 10 1
    • Chase
      ptgi36

      Chase

      PRE
      Neuberger Berman
      ptgi36more
      5? Try 8.
      Sep 11
  • Microsoft / Eng AmYe88
    I get a mail everyday from different HR in chase
    Sep 5 1
    • Chase / Eng Sha_
      You are in a better place
      Sep 5
  • BMO hPnJ57
    Efficiency Ratio
    Sep 5 0
  • Goldman Sachs fredDuglas
    Their profits are increasing, not necessarily their revenue. Which means they could just be cost cutting. You’d have to break it down by division to get a clearer picture.
    Sep 5 0

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