Update: 2/27/13, 10:30 AM.
FORTUNE -- An encounter with a whale can really change a fella.
A year ago, at JPMorgan's investor day, CEO Jamie Dimon said he believed his mega-bank was still too small. He said his firm would continue hiring and opening branches, even as the economy remained slow.
This year, it appears Dimon's tune has changed.
JPMorgan Chase (JPM) kicked off this year's annual investor day on Tuesday, with plans to reduce headcount and expenses in 2013. The bank says it expects to eliminate 4,000 positions and cut costs by $1 billion over the course of the year.
And the cuts will accelerate next year. Later in the day, Dimon said that the bank plans to eliminate as many as 13,000 additional employees in 2014. Most of the cuts will come from the bank's mortgage banking unit.
That's good and bad news. In part, the cuts in its mortgage unit signal that the bank believes the worst of its home loan problems are behind it.
But it also shows how, after a year dealing with a multi-billion dollar trading loss, credit rating downgrades, increased regulations and a slow market for deals, even Dimon appears to be paring back his vision. JPMorgan's headcount rose by 20,000 in 2011 to just over 260,000, as others were shrinking.
Now, even Wall Street's best performing bank can't avoid the pressure to slim down. In the past year or so, as banking profits have sagged with low interest rates and, at least until recently, few deals, there has been a race among Wall Street CEOs to prove their bank can be the most efficient.
In December, Citigroup (C) announced it would lay off 11,000 employees. In doing so, the bank touted that its so-called efficiency ratio would be among the lowest of the big banks. Goldman Sachs (GS) is also reportedly planning a new round of layoffs. Last year, Goldman executives talked about their desire to be Wall Street's low cost provider. Not exactly Master of the Universe talk.
Even with the job cuts, JPMorgan will still be plenty big. The firm's head count fell modestly in 2012 to 258,000 employees. That's up from just over 180,000 five years ago.
Update: An earlier version of this story said that JPMorgan planned to cut 19,000 jobs from its community and mortgage banking units by the end of 2014, but had not made a comment about overall staffing levels for 2014. In fact, Dimon clarified that number later in the day.
An executive who has tackled some huge problems at Citigroup prepares to lead S&P through rocky times. He faces tough times, an uncertain future and the possibility of a big payday.
FORTUNE -- When Doug Peterson becomes president of Standard & Poor's this September, he'll inherit a series of headaches that few would envy. S&P is under fire from politicians for downgrading the United States from AAA to AA+. The Department MOREKatie Benner - Aug 24, 2011 6:17 AM ET
Citigroup posted a stronger-than-expected second quarter, sending its shares higher in early trading even as it warned the economic outlook remains "uneven."
The New York-based bank made$3.3 billion, or $1.09 a share, up from the year-ago $2.7 billion, or 90 cents a share. Revenue fell 7% from a year ago to $20.6 billion. Analysts were looking for a profit of 97 cents a share on revenue of $20 billion.
Citi (C) cited a MOREColin Barr - Jul 15, 2011 8:19 AM ET
Four more years! Four more years!
That's what Citigroup's (C) board was inexplicably chanting this week as it signed up for another term under Vikram Pandit, the CEO whose signal accomplishments include repaying a giant government bailout and executing a reverse stock split that rescued Citi from penny stock purgatory.
That's not much of a record, but Citi is grateful anyway. It signed Pandit to a deal that will hand him more than $20 MOREColin Barr - May 19, 2011 10:19 AM ET
In the truth is stranger than fiction department, Citigroup is now the U.S. banking sector's shining beacon.
Shares in Citi (C), the giant bank that took the most bailout money during the financial meltdown, rose modestly Monday, even as other financial stocks were hammered by Standard & Poor's decision to cut its outlookon the United States' credit rating to negative.
Why the sudden flight to Citi? The New York-based firm reported its fifth MOREColin Barr - Apr 18, 2011 10:45 AM ET
Citigroup's unlikely recovery continued Monday, as the bank beat Wall Street estimates with its fifth straight quarterly profit.
Citi (C) made $3 billion, or a dime a share, for the first quarter of 2011. That compares with a year-ago profit of $4.4 billion, or 15 cents a share. Revenue fell to $19.7 billion from $25.4 billion a year earlier.
Wall Street analysts were calling for a 9-cent profit on revenue of $20.6 MOREColin Barr - Apr 18, 2011 8:12 AM ET
Citigroup's headed back to a place it hasn't seen since 2007.
The bank said Monday it will do a 1-for-10 reverse stock split in a bid to push its stock price out of the single digits. With Citi (C) trading at $4 and change, the move is likely to push Citi stock back above $40 when it takes effect in May.
The last time Citi shares hit that level was Nov. 1, MOREColin Barr - Mar 21, 2011 1:23 PM ET
The big banks are going to be spending a lot of time in court.
Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC) said in annual reports filed in recent days that they could face $6.7 billion in litigation-related losses in coming years beyond the amounts they have set aside in reserves. None of the banks foresaw any such losses in their filings last year.
The biggest potential hit is at MOREColin Barr - Feb 28, 2011 11:25 AM ET
Leave it to Citigroup to take Wall Street's money grab to new heights.
Citigroup (C) this month instituted a handy new compensation plan that will enrich CEO Vikram Pandit's top four lieutenants. Under the so-called Key Employee Profit Sharing Plan, Citi execs can earn between $1.7 million and $5.2 million -- assuming the bank and its top leaders can hit performance and conduct targets that are roughly as big as the side of a barn.
Citi said in MOREColin Barr - Feb 23, 2011 1:08 PM ET
Say you find yourself losing billions of dollars as your chief rivals – even Citi, for crying out loud -- make good money. How do you explain yourself?
If you're Bank of America (BAC), you write off your latest pathetic performance as "a unique and critical transition year for the company." Then you return to business as usual and hand out million-dollar bonuses like they're Necco Sweethearts.
This is how BofA's chief executive, Brian Moynihan, MOREColin Barr - Feb 1, 2011 11:04 AM ET
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