With more number of customers shifting to online and mobile banking, the US bank was prompted to take this decision. This is also a bid to save its annual expenses in consumer and investment banking primarily, reported Reuters.
JPMorgan executives said that its branches will shift focus from everyday transactions to more on advisory services on wealth management and account openings.
The closure represents about 5% of the total number of banking outlets.
The firm is planning to cut down expenses by $2.8bn in its investment bank, which excludes legal costs, and by about $2bn in its consumer bank segment.
JPMorgan plans to offset some savings by investments elsewhere in the firm and will also look to reduce technology as well as operational costs in investment banking division by $1bn and front-office personnel costs by $300m.
JPMorgan’s corporate and investment bank chief executive Daniel Pinto was quoted by Reuters as saying that the bank is not clear on the elimination of the number of jobs.
"We are working through the process."
The company’s cost cutting decision is said to be in line with its efforts to cut down expenses.
According to JPMorgan, in 2014 only 42% of all bank deposits were handled by Tellers, which represents a decline from 90% in 2007, The Associated Press reported.
Teller transactions, which are considered to be expensive, may cost about 65 cents to JPMorgan each time a deposit is made through a teller.
Image: JPMorgan Chase headquarters in Manhattan, New York City, New York, US. Photo: courtesy of official-ly cool
