J.P. Morgan plans to release dozens of its Swiss-based employees, according to information obtained by finews.com.
The biggest U.S. bank may cut as many as 140 jobs in Switzerland, according to information provided by several mutually independent sources. The company is currently working on a redundancy plan.
«Switzerland remains an important growth market for J.P. Morgan, and we are committed to providing best-in-class advice and counsel to clients across the country. To best deliver on this commitment, we have taken a number of steps to operate more efficiently,» said the bank in a statement to finews.com. «This year, we will take steps to relocate roles largely confined to support functions to other strategic hubs across our global network.»
Operations From Geneva to Zurich
The cuts will mainly affect the Geneva offices, where most of the bank’s employees in Switzerland are working. J.P. Morgan has about 1,000 members of staff in the country, spread across wealth management, investment banking and back office services. Some jobs may also be cut in Zurich.
The bank aims to prevent having to issue layoffs. It will offer its staff jobs in other areas of the company or cut jobs through retirement or attrition.
Back Office Cuts?
The sources suggested that the back office will be hardest hit by the cuts, with jobs in IT, operations and corporate services to go. The bank has been working on plans to cut jobs in Switzerland for some time – the cuts have no connection to the current turmoil.
The jobs will be moved abroad, mainly to India and Scotland, where the bank entertains relevant centers of competence. One source said that Peter Gabriele, the CEO of J.P. Morgan Switzerland, was in charge of implementing the cuts in Switzerland.
Cuts Amid Expansion Bid
The news come as a surprise given that the bank is pursuing a growth strategy in Switzerland, not least in the business with very wealthy clients. J.P. Morgan recently hired Marie-Thérèse Yates, a family-office expert for its Swiss operations.
