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Widespread layoffs have hit the mortgage industry hard, and major banks and large corporations are not immune.Bloomberg | Getty Images
JPMorgan announced Thursday that it was laying off hundreds of employees over rising mortgage rates amid a troubling housing market plagued by inflation.
It has not been disclosed how many employees will be laid off. Bloomberg revealed that about 1,000 employees in total will be affected, with nearly half being relocated to other divisions within the company.
“Our staffing decision this week was the result of cyclical changes in the mortgage market,” said a JPMorgan Chase spokesperson. Reuters† “We were able to proactively move many affected employees into new roles within the company and are working to help the remaining affected employees find new jobs within Chase and externally.”
By the end of 2021, the bank is estimated to have approximately 271,025 employees in total.
JPMorgan Chase joins real estate companies Redfin and Compass, both of which announced mass layoffs earlier this month as the housing market slows.
Each of those companies reduced their workforce by 10% and 8%, respectively.
“I’ll spend the rest of my life wondering how I could have avoided these layoffs. What’s most important now is treating the people who leave with humanity and respect,” said Glenn Kelman, Redfin’s CEO at the time.
JPMorgan Chase & Co lost just over 25% at market close on Thursday.
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