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Widespread layoffs have affected mortgage industry Tough, and large banks and major corporations are not immune.
J. P. Morgan announced on On Thursday it was laying off hundreds of employees because of rising mortgage rates amid a troubled housing market plagued by inflation.
Although it was not disclosed how many employees would be let go, bloomberg revealed About 1,000 total employees will be affected, of whom about half will be transferred to other divisions within the company.
“Our staffing decision this week was the result of cyclical changes in the mortgage market,” a JPMorgan Chase spokesperson said. Told Reuters, “We were able to transfer many of the affected employees to new roles within the firm and are working to help the remaining affected employees find new employment both in the chase and externally.”
By the end of 2021, the bank was Estimated Employing a total of 271,025 employees.
JPMorgan Chase joins the ranks of real estate companies Redfin and Compass, both of which announced massive layoffs earlier this month as the housing market slowed.
Each of those companies laid off employees by 10% and 8%, respectively.
Redfin CEO Glenn Kellman said at the time, “I will spend the rest of my life thinking about how I could have avoided these layoffs. What is most important now is to treat people with humanity and respect.”
JPMorgan Chase & Co. was down Just over 25% off when the market closes on Thursday.