JPMorgan Chase & Co informed nearly 1,000 First Republic Bank employees that they are being laid off, even temporarily, following its takeover of the failed lender.
The largest US bank on Thursday offered full-time or transitional roles to about 85% of the nearly 7,000 employees still working at First Republic, while the rest were told they would not receive offers, according to one person. matter according to knowledge. The temporary jobs will be for three, six, nine or 12 months, depending on the position, said the person, who asked not to be identified discussing personal information.
“Since our acquisition of First Republic on May 1, we have been transparent with their employees and kept our promises to update them on their employment status within 30 days,” a spokeswoman for New York-based JPMorgan said in a statement. has been completed.” “We recognize that they have been under stress and uncertainty since March and anticipate that there will be clarity and closure today.”
The spokeswoman added that former First Republic employees who were not offered jobs at JPMorgan “will receive salary and benefits for up to 60 days and will be offered a package that includes additional one-time payments and continued benefits coverage.”
First Republic said in late April that it would cut 25% of its workforce, one of a series of actions aimed at propping up the beleaguered bank and reassuring investors. Those measures ultimately weren’t enough, and the San Francisco-based firm was seized a few days later. Most of the employees who did not receive offers Thursday from JPMorgan were identified as part of First Republic’s planned cutbacks, but they have not yet been notified if the bank fails, the person said.
JPMorgan, which had 296,877 employees at the end of March, beat out rivals in the government-led auction for First Republic. As part of its winning bid, JPMorgan acquired First Republic’s roughly $173 billion in debt, $30 billion in securities and $92 billion in deposits — and then had to decide how to deal with its employees. What to Do in the U.S., dozens of which went on to gross over $10 million. year, Bloomberg News reported earlier Thursday.
