JPMorgan is spending $9bn but still has a bias against hiring new people
When JPMorgan revealed late last year that its expenses would rise by $9bn in 2026, its shares fell by nearly 5%. Announcing fourth quarter results today, the bank reiterated its intention to spend the additional money, but suggested it may not go to people.
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Speaking today, JPMorgan CFO Jeremy Barnum, said the bank spent 2025 becoming accustomed to "living within its means." - "When someone wants to get something done, we want to ensure that their first reaction is not 'hire more people,'" he added.
Barnum said much the same thing in October, implying that the no-hiring approach has inveigled its way into the bank's culture.
What will this year's extra $9bn be spent on? In October, Marianne Lake said it will go towards branches, marketing, the credit card business, advisors' bonuses in wealth management and, AI.
Today, Barnum said the bank is "allowing ourselves to at least plan for some additional hiring in technology to support long term investment initiatives," and said that this includes AI. CEO Jamie Dimon said JPMorgan has to invest in AI simply to keep up with competitors like Stripe. Successful investments don't lead to additional points of profit margin, but must be endlessly reinvested, said Dimon. JPMorgan isn't so focused on meeting expense targets that it will be left behind, Dimon observed.
Alongside technology staff, Barnum said JPMorgan will spend this year hiring more advisors and private banker. Conor Hillery, head of investment banking for EMEA at the bank also told Financial News that he intends to hire additional bankers in the Middle East, irrespective of the state of the market.
Last year, JPMorgan increased overall compensation spending by 6% and spending on technology, communications and equipment by 12%. Net headcount increased by 1,289 people, to 318,512. Barnum noted that headcount increased rapidly during the pandemic. In 2022, for example, JPMorgan added 20,000 people.
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