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Widespread layoffs have hit the mortgage sector hard, and big banks and big corporations are not immune.
JPMorgan announced Thursday that it was laying off hundreds of employees due to rising mortgage rates amid a worrying real estate market plagued by inflation.
Although it was not revealed how many employees will be laid off, Bloomberg revealed that approximately 1,000 total employees will be affected, and nearly half will be relocated to other divisions of the company.
“Our staffing decision this week was the result of cyclical changes in the mortgage market,” a JPMorgan Chase spokesman said. Reuters. “We have been able to proactively move many affected employees to new roles within the company and we are working to help the remaining affected employees find work in Chase and abroad.”
By the end of 2021, the bank was estimated to employ about 271,025 total employees.
JPMorgan Chase joins the ranks of real estate companies Redfin and Compass, both of which announced massive layoffs earlier this month as the real estate market slows.
Each of these companies reduced its workforce by 10% and 8%, respectively.
“I will spend the rest of my life wondering how I could have avoided these layoffs. The most important thing now is to treat people who leave with humanity and respect,” said Glenn Kelman, CEO of Redfin at the time.
JPMorgan Chase & Co. was down just over 25% at the close of the market on Thursday.