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.
JPMorgan Chase said Heidi Miller, one of the top women in banking and a longtime ally of CEO Jamie Dimon, will retire early next year.
The announcement comes just a year after Dimon tapped Miller (right) to head the No. 2 U.S. bank's international push. Dimon said last June that creating that job would "augment -- not replace -- business lines around the world, helping them accelerate and prioritize their efforts and MOREColin Barr - Jun 14, 2011 5:09 PM ET
JPMorgan Chase kicked off first-quarter bank earnings season with the first of what is sure to be many mixed reports.
First-quarter profits surged 67% from a year ago, beating estimates. But revenue tumbled 8% from a year earlier and the second-biggest U.S. bank complained of "extraordinarily high losses we still are bearing on mortgage-related issues."
JPMorgan Chase (JPM) made $5.6 billion, or $1.28 a share, which is up from $3.3 billion, or 74 cents a MOREColin Barr - Apr 13, 2011 7:19 AM ET
Let's say you're a giant bank with an extra 400 grand lying around. What to do with it?
You could pay six workers the median family income in your home state of New York, perhaps. Or you could pick up the moving expenses for your CEO, who made $20.8 million last year and $58 million over the past three – not counting the $2 million he just cleared on the sale MOREColin Barr - Apr 8, 2011 12:10 PM ET
Think you've got problems? Check out JPMorgan Chase's legal docket.
The second-biggest U.S. bank by assets said Monday that its legal losses in coming years could exceed the amount it has already set aside by as much as $4.5 billion.
That makes JPMorgan Chase (JPM), by its own assessment, the bank with the biggest legal headaches coming up, unseating Citi (C), which last week said its own costs could exceed reserves by MOREColin Barr - Feb 28, 2011 5:04 PM ET
The recession is officially over for Jamie Dimon.
The JPMorgan Chase (JPM) CEO just got a $17 million stock bonus for 2010. That is the richest reward for a Wall Street chief so far this bonus season and pushes Dimon's pay back toward the levels that prevailed before the financial meltdown of 2008.
The big payday comes after the bank posted a 48% profit gain for the past year. Investors are now waiting for JPMorgan to MOREColin Barr - Feb 18, 2011 10:09 AM ET
Even America's favorite banker can't win a shootout with the U.S. military.
So it is with JPMorgan Chase (JPM) chief Jamie Dimon. He strode into the foreclosure fiasco last fall with guns blazing, as usual, claiming Chase wouldn't be tarnished by the banking industry's mortgage misbehavior.
But Dimon has been silenced by the news this week that Chase improperly foreclosed on 14 military families and milked 4,000 others of $2 million in MOREColin Barr - Jan 20, 2011 6:29 AM ET
JPMorgan Chase posted a stronger-than-expected fourth-quarter profit, even as it bolstered its reserves for mortgage-related legal expenses for the second straight quarter.
The New York-based bank made $4.8 billion, or $1.12 a share, for the latest quarter. That is up from a profit of 74 cents a share a year earlier and compares with the Wall Street analyst consensus estimate of 99 cents a share.
JPMorgan (JPM), the No. 2 U.S. lender by assets after MOREColin Barr - Jan 14, 2011 7:16 AM ET
Fans are crossing their fingers they'll soon see the swaggering, old JPMorgan again.
JPMorgan Chase (JPM) was the biggest winner in the financial crisis, scooping up Bear Stearns and Washington Mutual on the cheap and riding out the stock market collapse. Already well connected, Jamie Dimon & Co. got one more string to pull this month when longtime executive William Daley signed on to run the White House.
Yet lately the No. MOREColin Barr - Jan 13, 2011 6:40 AM ET
Perhaps JPMorgan Chase had more to do with Bernie Madoff than Jamie Dimon would like to admit.
That is the contention of Irving Picard (right), the court-appointed trustee who is charged with recovering funds on behalf of Madoff's victims. He sued JPMorgan Chase (JPM) in U.S. bankruptcy court Thursday, saying the bank enabled Madoff's massive fraud.
Picard wants almost $1 billion in fees and profits the bank pocketed over two decades as MOREColin Barr - Dec 2, 2010 2:50 PM ET
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