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- JPMorgan is reportedly looking into relocating thousands of employees out of the New York area in an effort to reduce costs in the event of an economic slowdown, according to a new report from Bloomberg.
- The bank’s executives are examining what roles could potentially be moved to more affordable areas such as Plano, Texas; Columbus, Ohio; and Wilmington, Delaware, Bloomberg reported.
- Any effort in the investment bank and asset-management group will mainly impact non-client facing roles, but some junior-level investment bankers could be affected, the report said.
- Watch JPMorgan trade live on Markets Insider.
One of Wall Street’s largest institutions is considering moving thousands of employees out of the New York area.
According to a new report from Bloomberg, JPMorgan Chase & Co. is looking into relocating certain roles out of the financial hub to more affordable states like Ohio, Texas, and Delaware.
The move is an effort to curb costs in the event there’s an economic slowdown ahead, Bloomberg reported. Any shift in the investment bank and asset-management group will mainly impact non-client facing roles, but some junior-level investment bankers could be affected.
The bank has already laid out plans to move several hundred credit-risk roles from New York to Texas and to relocate some senior-level consumer bank employees there, Bloomberg reported. JPMorgan has also informed some employees that the New York area will no longer act as a center for compliance, according to Bloomberg.
JPMorgan spokesman Joe Evangelisti told Markets Insider in an email that location strategy is about more than just costs and that it’s “healthy to continually review where it’s best to locate” employees.
“We are committed to NYC – expect it to be our largest location for the foreseeable future,” Evangelisti wrote in an email.
The firm is currently building a new headquarters in Manhattan that’s expected to host as many as 12,000 employees.
Shares of JPMorgan are up almost 30% year-to-date.