First Republic hit with 1,000 job cuts after California bank was seized and sold to JPMorgan

New York, May 26 (BNA): About 1,000 employees have been let go at First Republic Bank about a month after it was seized by regulators and acquired by JP Morgan Chase.

The vast majority of First Republic employees, roughly 7,200 before it ran into trouble, were reported by the Associated Press (AP) to have been offered jobs by JPMorgan, which means about 15% of the bank’s staff has been let go.

First Republic cut nearly 25% of its workforce before JPMorgan got involved. The bank said bank employees who were not offered jobs at JPMorgan would receive an additional 60 days of salary and benefits. Additional payments to those let go will depend on how long they have worked for the First Republic.

First Republic Bank, headquartered in San Francisco, has become the second largest bank in US history. Regulators sold all of his deposits and most of his assets to JPMorgan Chase to restore order after the collapse of three banks, including Signature and Silicon Valley, and threatened to undermine confidence in the US banking system.

Banks were unique, however, due to the large uninsured deposits held by their customers and exposure to the tech industry, which was hurt by higher interest rates that made borrowing more expensive.


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