Rising stock prices, rebounding profits, restored dividends and a growing economy are signaling to U.S. banks it’s time for more job cuts. Even after the industry posted its best results since 2006, the six largest U.S. banks announced plans in the first three months of this year to eliminate about 21,000 positions, or 1.8 percent of their combined workforce, according to data compiled by Bloomberg. That’s the most since 2011’s third quarter. JPMorgan Chase & Co. (JPM), whose 259,000 people produced three straight years of record profit, topped the list with 17,000 reductions scheduled by the end of 2014. .(see here for link)
JPMorgan Leads Job Cuts as Banks Seek to Bolster Profit - Bloomberg
The banks want to get the highest profit production for the least amount of labor cost. The marginal return that the banks are getting by laying people off and still yielding profit is in their benefit. I think that this will continue to happen as long as the banks are producing profit.
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