A publicly traded, multinational bank is trimming the division that includes its asset management arm.
| Mary Callahan Erdoes|
CEO of Asset and Wealth Management
] is cutting hundreds of jobs from its asset and wealth management (AWM) division (which is led by Mary Callahan Erdoes
. An unnamed source tells Bloomberg
that the cuts are being made around the world and will reduce the size of AWM's support team.
"It is normal course of business for us to review our staffing annually to ensure appropriate levels, and adjust as necessary," J.P. Morgan spokesman Darin Oduyoye tells Bloomberg
. "We continue to invest in our business and talent, including hiring top advisers in key markets and expanding our product and service offering."
Like many asset managers, J.P. Morgan Asset Management (JPMAM) took a hit in Q4. Revenue fell
(12 percent year-over-year and six percent in the quarter) to $1.723 billion, and pre-tax operating margin fell to 25 percent (from 27 percent in Q3 2018 and 29 percent in Q4 2017). Across all of AWM, AUM fell (two percent year-over-year and five percent in Q4 alone) to $1.987 trillion, and net income fell (eight percent year-over-year and 17 percent in Q4 alone) to $604 million.
Yet by at least one measure, AWM continues to grow at the bank. Headcount climbed (four percent year-over-year and one percent in Q4 alone) to 23,920 at the end of 2018. (That includes 2,865 "wealth management client advisors", up ten percent year-over-year and two percent in Q4 alone.) Put another way, AWM grew by nearly 1,000 people last year, despite the August JPMAM cuts.
This latest round of cuts comes after news leaked last August of JPMAM laying off
about 100 people.
Neil Anderson, Managing Editor
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