JPMorgan Chase Slows Hiring and Cuts Jobs as Bank focusses on AI

JPMorgan Chase, the biggest bank in the United States, is changing the way it operates by slowing down hiring and using artificial intelligence (AI) to work more efficiently. The bank’s Chief Financial Officer (CFO), Jeremy Barnum, recently told investors that managers have been asked to avoid adding more staff unless it’s absolutely necessary. Instead, the bank is focusing on getting more work done through better use of technology.

AI Replacing Some Jobs in Operations

Over the past five years, JPMorgan’s workforce has grown by more than 23%, reaching over 317,000 employees by the end of 2024. But now, the bank is starting to reduce the number of people in certain departments. Marianne Lake, who is the CEO of Consumer and Community Banking at JPMorgan, said they plan to cut about 10% of jobs in teams that deal with fraud detection, payment processing, and account services.

These changes are possible because of recent improvements in AI. According to Lake, the job cuts might end up being even bigger than 10%. “I think we’ll actually reduce more jobs than we’re projecting,” she said during the bank’s annual investor event in New York City.

AI Seen as Key to Boosting Efficiency

CFO Jeremy Barnum added that AI is helping remove tasks that are repeated or unnecessary. “It’s amazing what AI can do,” Barnum said. “It helps everyone — from beginners to professional computer scientists — to work smarter and faster.” He believes AI will help the bank cut down on waste and become more productive.

Strategic Hiring Will Continue

Although JPMorgan is slowing down hiring overall, Barnum explained that the bank will still hire in areas that are directly tied to business growth. This includes roles like bankers, financial advisors, and employees working at local branches. These are considered “high-certainty” roles — jobs where hiring more people clearly helps grow the company’s revenue.

CEO Jamie Dimon Encourages AI Adoption

JPMorgan’s CEO, Jamie Dimon, has also been promoting the use of AI and other technologies that can replace routine jobs. Earlier this year, he told employees in a company meeting that “attrition is your friend,” meaning that when employees leave, their roles don’t always need to be filled if technology can handle the work.

Dimon explained that cutting down on layers of management and unnecessary steps — or bureaucracy — will help the company become stronger. “We could be far more efficient,” he said. “Reducing bureaucracy literally will reduce cancer,” he added, using a strong metaphor to describe how harmful too much red tape can be.

Focus on Returning to the Office

In addition to changes in hiring and technology, JPMorgan is also pushing employees to return to the office. In a recent interview with Bloomberg Television, CEO Jamie Dimon defended this decision. He said working in an office helps young employees learn better because banking is like an apprenticeship — you learn by working closely with others. “You can’t learn everything by working from your basement,” Dimon said. He also added that over time, employees will likely feel happier working face-to-face.