About 1,000 First Republic Bank employees are being let go nearly a month after being taken over by JPMorgan Chase.
NEW YORK – About 1,000 First Republic Bank employees are being let go a month after it was seized by regulators at JPMorgan Chase.
Most of First Republic’s employees, roughly 7,200 before it went into trouble, had been offered jobs by JPMorgan, meaning about 15% of the bank’s workforce was out of a job.
When First Republic failed and was bought by JPMorgan on May 1, JPMorgan executives said they intended to give First Republic employees 30 days to learn new roles, and that not every employee was guaranteed a job.
“We understand that you have been under stress and uncertainty since March and hope that today will bring clarity and closure,” the bank said in a written statement.
First Republic cut 25% of its workforce before JPMorgan stepped in. Bankers who were not offered jobs at JPMorgan will receive an additional 60 days of pay and benefits, the bank said. Additional payments will be based on how long you have worked at First Republic.
San Francisco-based First Republic Bank became the second largest bank failure in American history. Regulators sold all deposits and most assets to JPMorgan Chase after the collapse of three banks, Signature and Silicon Valley, threatened to undermine confidence in the US banking system.
The banks were unique, but their customers held high uninsured deposits and exposure to the technology industry, which made borrowing more expensive as interest rates rose.
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