The financial world took a jolt early Tuesday morning when the nation's biggest bank, JPMorgan Chase, announced plans to eliminate roughly 8,000 jobs as demand for refinancings drop, Bloomberg reports.
JPMorgan said in a presentation Tuesday that the jobs to be eliminated are in the bank's consumer and mortgage banking units, the report said.
Job reductions over the past several years at JPMorgan have been massive, even in a recovering economy. Since the start of 2013, total staff cuts at the company have numbered 24,500, the company revealed in the presentation. Back in 2013, the firm indicated it would ax up to 19,000 in the two divisions by the end of this year.
But JPMorgan is not the only financial giant thinning its workforce. Rivals Bank of America and Wells Fargo also have cut back payrolls over the past few years.
The real culprit: rising interest rates are nixing the flood of refinancings that helped to bolster bank profits. JPMorgan said that it employed 251,196 people at the end of last year -- down 7,557 from 2012.