JPMorgan Chase to temporarily close 20% of its branches to combat Coronavirus pandemic
- JPMorgan Chase to temporarily close 20% of its branches to combat Coronavirus pandemic.
- JPMorgan to maximize work from home and minimize working hours in the rest of its branches.
- JPMorgan loses around 10% in the stock market on Wednesday following the announcement.
JPMorgan Chase (NYSE:JPM) is the latest victim of the Coronavirus pandemic as the American multinational investment bank announced on Wednesday that it plans on temporarily closing around 20% of its nationwide branches. The bank also said that in an attempt to minimize the spread of the flu-like virus, the financial services company has decided in favor of reducing staffing in the rest of its branches that will remain operational during this time.
In its address to the employees, JPMorgan Chase remarked:
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“We are planning to temporarily close about 20% of our branches. This will help us protect our employees as we provide essential services to our customers and the communities we serve.”
JPMorgan Is The 1st Of U.S Megabanks To Announce Widespread Closures
In terms of assets, JP Morgan is the largest bank in the United States. U.S banks previously resorted to enhanced restrictions over employee travel and exploration of work from home opportunities. Multiple financial institutions had also declared a dedicated team sent to backup sites to sustain operations. JPMorgan Chase’s announcement on Wednesday, however, is the first from a U.S megabank that entails an aggressive stance of widespread closures to combat the Coronavirus pandemic.
JPMorgan Chase currently has 256,981 employees in total working at 4,976 branches. The temporary shutdown that begins on Thursday will see at least 1,000 of its branches halt operations. The bank, however, didn’t name the branches that are to be closed tomorrow. The rest of its network, the bank added, is sufficient to serve its clients and communities at large.
In the branches that remain operational, JPMorgan said it plans on maximizing work from home and minimizing work hours to further reduce the risk of infection for its employees and customers alike. None of the changes, as per the bank, are likely to affect the workers’ salary structure.
JPMorgan Loses 10% In The Stock Market Following The Announcement
The head of JPMorgan’s retail unit, Thasunda Brown Duckett was reported quoting in her address to her team on Wednesday:
“Every day I’m asking what more I can do, as a mother, as a daughter, and as a CEO. You are my tribe and your health and safety is as important to me. I am balancing that with the fact that we are essential to the communities we serve, and we need to be there to help.”
JPMorgan Chase dropped around 10% in the stock market on Wednesday following the announcement.