Keep The Beef, Cut The Fat
JPMorgan Chase's cafeteria burgers may survive the current market, but the investment banking division can expect more job cuts, CEO Jamie Dimon said at a recent town hall meeting between top executives and employees, according to a CNBC report. It was the first time management addressed employees since the firm's acquisition of Bear Stearns was completed, and an estimated 1,500 employees were in attendance or on conference call. JPMorgan Chase has already cut 15 percent of its investment banking staff due to weak investment banking profits.
During the conference, Dimon was asked about whether he had ordered less-beef-per-cafeteria burger. The notorious penny-pincher had this to say about that: “It is not true that I ordered smaller hamburgers for the café, but if I thought about it, I would have done it.” Last year management sent a memo around stating that the firm was going to remove milk from some office coffee stations, but it later reversed the move due to the ensuing uproar.
Investment banking co-head Steve Black also said at the town hall meeting that the firm's purchase of Bear Stearns for $10 a share was a steal.
