As extensive cost reduction plan to boost earnings, JP Morgan Chase and Co. has adapted to stop voice mail services for its several employees, as reported by Wall Street Journal. The news came out followed by the US bank decision to reduce its work force by thousands.
On Wednesday, in a financial conference, Chief Executive Officer at consumer community unit of JP Morgan, Gordon Smith said that the service that provide $10 each month will no longer be available to most of its employees. Mr. Smith said, “We realized that hardly anyone uses voice mail anymore…we’re all carrying something in our pockets that’s going to get texts or e-mail or a phone call to you.” quoted by WSJ. JP Morgan spokeswoman also told WSJ that the voice mail service is mainly cut for those workers who don't have any direct contact with employees. So, majority of employees employed in operations to technology departments will no longer be availing the free voice mail service facility provided by JP Morgan.
The US bank has decided to cut its cost with the target of improving profitability prospects at the company. Around 3 months back, United States largest bank in terms of assets, revealed its cost reduction strategies to shareholders in a conference. JP Morgan disclosed that it has decided to cut its spending by over $4.8 billion, mainly from it investment banking and retail unit. Finally, the bank plans on capturing the $57 billion spending target in 2015, down from $58.4 billion in 2014.
The reduction in voice mail services at consumer & community division at the bank will support the expense reduction policy and continuous revenue generation policy of James Dimon, CEO and Chairman of the bank. JP Morgan spokesperson also told WSJ that as an alternate to voice mail service, the customer will now be getting a message notifying about unavailability of the service.
Mr. Smith said that the unit was currently on the correct path to meet cost reductions outlined to shareholder previously. He further said that the unit had successfully executed the necessary actions required for yearly expense target this year at JP Morgan. He also ensured, “We’ve laid out pretty good plans around branch automation, what we are doing with digital and mobile…the mortgage servicing space. The vast majority of (the expense savings) are just where we want them to be.”
Moreover, majority of other large bans in US have implemented the similar measure to reduce expenses. As of March 31, BofA cut workforce by 20%, while Citigroup slashed its workforce by 9.1%.
Moreover, majority of other large bans in US have implemented the similar measure to reduce expenses. As of March 31, BofA cut workforce by 20%, while Citigroup slashed its workforce by 9.1%.
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