J.P. Morgan’s (JPM) private bank is reportedly slashing about 100 jobs as the unit itself shifts focus to a more condensed group of ultra-high-net-worth clients.
The cuts will affect employees in several locations and departments, the Wall Street Journal reported, citing people familiar with the matter.
The private bank, which boasts a host of wealthy clients, also recently cut as many as 30 staff from its Asia region. In the past few months, the division also made cuts of over 100 employees in New York, London, Washington, and Boston, according to the Journal.
The layoffs come as J.P. Morgan restructures its private banking arm to handle a smaller pool of higher-net-worth individuals who tend to entail less risk and generate more fees. As a result, the bank has raised its minimum in investible assets from $5 million to $10 million—a rule that is expected to take effect later this year. The private bank has laid off workers in anticipation of fewer clients who require more intensive service.
The changes are expected to affect about 10% of the bank’s clients, who will be moved from J.P. Morgan’s private bank over to an offering with less personalization, known as Private Client Direct.
J.P. Morgan’s shift toward higher-net-worth individuals is also an industrywide trend, as U.S. banks attempt to come in line with financial regulation designed to limit risk. Wealth management tends to have a larger pool of cash, allowing banks to maintain profits while obeying the law.
Private banks are generally quite exclusive and offer more than just financial services. Some help clients buy art or get tickets to Broadway shows and sporting events.
J.P. Morgan has declined to comment.