“Our staffing decision this week was a result of cyclical changes in the mortgage market,” JPMorgan said in a statement.
“We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally,” JPMorgan said in the statement.
The layoffs underscore the wide-reaching impact of the Federal Reserve’s shift to inflation-fighting mode.
Not only is that hurting demand for new mortgages, but it’s hitting the lucrative refinancing business, too.
“Refinance is dramatically decreasing. There is not the capacity to support the staffing model, unfortunately,” the person familiar with the matter said.