FLORENCE — Approximately 550 employees at the Florence-based Chase Home Mortgage office were given a 90-day non-working notice on Thursday.
This is the second round of major layoffs in as many months for the mortgage office has undergone, which cut 310 jobs in January at 30 jobs last July.
Amy Bonitatibus, spokesperson for J.P. Morgan Chase, said the reduction in force is because of the continued decline in delinquent loans and foreclosures, an area the Florence office specializes in.
“Fewer homeowners are falling behind on their mortgages, so we need fewer employees to assist those who are struggling,” Bonitatibus said. “We will work with affected employees to find jobs with local companies.”
Similar to employees laid off in January who were given a 60-day, non-working notice allowing them to receive pay without reporting for work while they pursue other opportunities, recently laid off employees will receive 90 days of paid time.
Though the Florence office isn't expected to have another round of layoffs this year Bonitatibus said, indicators from J.P. Morgan Chase management may prove otherwise for the remaining 500 people at 2210 Enterprise Drive.
J.P. Morgan Chase CEO Jamie Dimon and other executives announced in late February at a shareholder presentation that the bank will cut 17,000 jobs by the end of 2014 — with 13,000 to 15,000 of those coming from the mortgage sector.
Employees were not allowed to talk with the media about the layoffs.
J.P. Morgan Chase is the country's largest bank by assets and posted fourth quarter profits of $5.7 billion up from $3.7 billion in the fourth quarter of 2011.