Big bank gets the message on cost-cutting

Big bank gets the message on cost-cutting

Big bank gets the message on cost-cutting JP Morgan Chase, the largest bank in the United States, announced its plans to end voicemail services for half of its consumer bank employees. The bank is aiming to slash annual expenses by $2 billion, and the removal of voicemail services – at $10 per line per month – will save $3.2 million each year.

Some 68,000 workers will no longer have access to voicemail, though the bank says they already have limited interaction with customers. The bank also said it has cut voicemail for certain departments, such as IT.

"We realized that hardly anyone uses voicemail anymore, because we are carrying something in our pockets that get texts, e-mail or a phone call to you," said Gordon Smith, the head of the bank’s consumer and community division.

While customers increasingly opt to communicate over more modern and efficient platforms, such as text and email, the bank has elected to keep voicemail systems in place for those employees who have regular contact with clients – such as branch managers.

The bank is following the footsteps corporate giant Coca-Cola, which cut voicemail services at its headquarters last year. According to an internal memo from Coca-Cola’s chief information officer Ed Steinike, the move was an effort “to simplify the way we work and increase productivity.”

Have your say: Is it time to get rid of voicemail?