JPMorgan Chase plans to close 300 branches, around 5% of all its branches, in a nod to the increasing usage of the internet for processing ordinary banking transactions. The move was announced today at an investor’s conference, as part of a $1.4 billion cost-cutting measure taken up this year.
Chase executives explain the measure is part of an effort to shift traditional banking transactions to online and mobile banking, allowing the bank branches to function for advising clients on banking and investments.
JPMorgan had a total of 5,602 branches in 2014, and employed around 46,000 at the branches. The closures will amount to around 5% of all retail branches, and additional employee layoffs are expected. In previous years, Chase has fluctuated between adding a few branches per year to reducing a few.
The company does not yet know which branches will be closed, so we can all hope that our local branch will remain.