JPMorgan Chase has unveiled a plan to further consolidate its trading platforms around the world, affecting the jobs of around 3,000 employees.
Two years ago, the investment bank had 10 trading systems, half of which have already been closed down. It wants to have just two systems by 2014.
According to the Financial Times, Jes Staley, CEO of the firm’s investment banking unit told investors that the $500 million plan to cut the number of trading platforms would lead to annual savings of $300 million.
These would be partly due to the reduction in staff required to maintain the systems. Initially, 3,000 employees at JPMorgan manually input trade data into the system, a figure which has since been reduced to 1,700.
Staley said that he plans to eventually eliminate this workforce entirely – although the Financial Times said people familiar with the situation insisted that there was opportunity for redeployment in the company.
Meanwhile, the bank is expected to be able to achieve even more savings overall, of more than $1 billion, due to the increased efficiency and lower costs of running fewer trading systems. This would make a significant dent in the $8.5 billion that JPMorgan spends each year on its IT.
In its investor presentation, other technology initiatives that JPMorgan said it plans to pursue in 2011 include streamlining processes and reducing the cost of ownership, and developing a flexible framework that will support the fast introduction of new products.