J.P. Morgan employs a lot of tech staff. At the last count, our sources suggested around 30,000 people in this area - still around 25,000 less than Google, but a huge employee base for a company whose principal focus is finance.
But just because technology is a big focus for banks, doesn’t mean that they want to base their IT staffers out of major financial centers. We suggested previously that the J.P. Morgan’s decision to shift 350 tech jobs out of London to the lower cost destination of Bournemouth – a beachtown on the south coast of the UK – could mean a change in strategy that could hit the U.S.
So it has proved. J.P. Morgan is moving 2,150 roles from New York – where they are housed in a series of disparate offices – to a single location in New Jersey. This will have the double benefit of cutting costs and consolidating the offices.
Immediately, this is unlikely to affect the bank balances of J.P. Morgan employees. It offered its employees in London the same salaries to make the move to Bournemouth, so it could follow suit in the U.S. Longer term, however, the concept of ‘nearshoring’ – shifting jobs out to lower cost destinations close to home – is likely to mean downward pressure on pay.
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Quote of the day:
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