JP Morgan Chase, the largest U.S. bank by assets, is hitting pause on most hiring while it doubles down on artificial intelligence to improve efficiency and reduce operational costs. The move marks a strategic pivot after years of rapid headcount growth and comes as part of a broader internal push to streamline operations using emerging technologies.
At the bank’s annual investor presentation on Monday, CFO Jeremy Barnum urged department heads to “resist head count growth where possible” and instead prioritize productivity and efficiency gains.
Workforce to Shrink in Key Operations Areas
The shift comes on the heels of a 23% workforce increase over the last five years, with JP Morgan employing over 317,000 people as of the end of 2024. However, the tone is now changing.
Marianne Lake, CEO of consumer and community banking, said AI could lead to a 10% reduction in operations roles, especially in departments like fraud prevention, payment processing, and account services. She suggested the actual reduction could surpass projections, stating, “I would take the over on this projection and bet that we will deliver more.”
AI Adoption to Eliminate Redundancies
Barnum reiterated the bank’s confidence in AI, calling it “amazing stuff” with high potential for eliminating redundancies across various units. He noted that both non-tech employees and seasoned programmers are already benefiting from AI tools.
This AI-first strategy echoes previous remarks from CEO Jamie Dimon, who has advocated for tech-led operational change and urged staff to embrace automation. At a recent town hall, Dimon bluntly said, “Attrition is your friend”, signaling a cultural shift that favors leaner teams and tech-powered solutions.
Selective Hiring Will Continue
Despite the hiring slowdown, Barnum clarified that strategic hiring will still continue in high-growth areas such as client-facing bankers, financial advisors, and retail branches, where staff directly contribute to revenue growth.
Dimon on Return to Office: ‘You’re Not Going to Tell JPMorgan What to Do’
Separately, Jamie Dimon reaffirmed JP Morgan’s return-to-office (RTO) policy, which mandates employees work from the office for most of the week. In an interview with Bloomberg Television, Dimon argued that apprenticeship and learning culture are better fostered in person.
“I completely applaud your right to not want to go to the office every day. But you’re not going to tell JPMorgan what to do,” he said, speaking at the Global Markets Conference in Paris.
Dimon also linked workplace bureaucracy to inefficiency, stating, “Reducing bureaucracy literally will reduce cancer.” His bold stance reflects the bank’s current shift toward a performance-oriented and tech-driven environment.
