About 1,000 First Republic Bank employees are laid off about a month after it was seized by regulators and acquired by JP Morgan Chase
NEW YORK — About 1,000 First Republic Bank employees are being laid off about a month after it was seized by regulators and acquired by JP Morgan Chase.
The vast majority of First Republic employees, around 7,200 before it ran into trouble, were offered jobs by JPMorgan, meaning around 15% of the bank’s employees were laid off.
When First Republic failed and was purchased by JPMorgan on May 1, JPMorgan executives said they planned to take 30 days to determine new roles for First Republic employees and not all employees would see each other. not guarantee a job.
“We recognize that they have been under stress and uncertainty since March and hope today brings clarity and closure,” the bank said in a written statement.
First Republic cut about 25% of its workforce before JPMorgan intervened. Bank employees who are not offered jobs with JPMorgan will receive an additional 60 days of pay and benefits, the bank said. Additional payments to those who will be terminated will be based on the length of their employment at First Republic.
San Francisco-based First Republic Bank has become the second largest bank failure in US history. Regulators sold all of its deposits and most of its assets to JPMorgan Chase to restore order after three banks, including Signature and Silicon Valley banks, collapsed and threatened to undermine confidence in the US banking system.
The banks were unique, however, because of large, uninsured deposits held by their customers and exposure to the tech industry, which had been hammered by rising interest rates that made borrowing more expensive.