Chase Bank executives are closing their downtown wholesale loan operation, sending 145 jobs to either Chicago or to Bangalore, India from Louisville.
Employees were told yesterday the changes will be phased in, completed by the end of 2013, said Emily Smith, JP Morgan Chase’s Columbus, Ohio-based vice president of Community Engagement & Media Relations.
The changes affect only the back-office wholesale loan operations, which are on several floors of the Marion E. Taylor Building at 312 S. Fourth St.
The move will not affect the downtown retail branch, wealth management operations or Kentucky region headquarters operations in the same complex, Smith said.
Wholesale loan operations typically involve processing services to the largest borrowers such as large corporations. Such services typically include cash management, leasing management and merchant banking.
Moving the wholesale loan operation out of Louisville is part of a consolidation of back office operations that came out of an efficiency audit, Smith said.
“The jobs are not going away. The operations those positions are going to are much, much, much larger operations.”
The Louisville jobs will not go away all at once.
Sometime in June, employees will be notified at the 60-day mark before the consolidation, Smith said.
“We’re not coming in and saying, ‘One hundred forty-five jobs are leaving.’ This will be phased in through the year,” Smith said:
We told our people early so they have plenty of time to plan if they want to relocate within the firm. Also, we’ll be working with (city officials) to help people who decide they don’t want to relocate find positions in Louisville at operations outside Chase. We contacted the mayor’s office yesterday. We’re going to see what we can do to help prepare people … help with resumes. Help pulling together opportunities with other firms.
Chase informed city officials of the changes earlier this week, stated Chris Poynter, spokesman for Metro Mayor Greg Fischer, in an email.
“It’s unfortunate and we certainly feel for those who will be losing their jobs,” Poynter stated. “With the economy improving, we hope that that impacted employees can quickly find other work Louisville.”
Chase leases four floors in the Marion E. Taylor Building – the second through the fifth floors, according to real estate sources.
Smith said it’s too early to know how Chase may reconfigure its downtown office space.
The building is owned by Brookfield Asset Management, based in Toronto. Brookfield executives did not return calls for comment.
JP Morgan Chase, based in Manhattan, is the No. 2 bank in the Louisville market – ranked by deposits – behind Pittsburgh-based PNC.