JPMorgan is Cutting About 1,000 First Republic Bank Employees

JPMorgan Chase has informed approximately 1,000 employees of First Republic Bank that they will no longer have their jobs.

Earlier this month, JPMorgan acquired most of First Republic’s assets after the San Francisco-based regional bank was seized by the government, making it the second-largest bank failure in US history.

A spokesperson for JPMorgan confirmed that on Thursday, they updated all First Republic employees regarding their future employment status. The majority, around 85% of the employees, have been offered either transitional or full-time roles within the company.

However, this means that approximately 15%, or roughly 1,000 employees, did not receive an employment offer. The news of job losses was previously reported by the Financial Times.

JPMorgan stated that their agreement with the Federal Deposit Insurance Corporation (FDIC) to acquire most of First Republic’s assets on May 1 did not include all of the bank’s employees.

The bank emphasized their commitment to transparency and fulfilling their promise to provide updates on employment status within 30 days. JPMorgan acknowledged the stress and uncertainty that employees have experienced since March and hopes that the latest announcement brings them clarity and closure.

For those employees who have not received an offer, JPMorgan will provide pay and benefits for a period of 60 days. Additionally, they will be offered a package that includes an additional lump sum and continuing benefits coverage, along with resources to aid them in finding new opportunities.

The exact breakdown of full-time versus transitional roles for the First Republic employees offered employment at JPMorgan is not yet clear. The transitional roles being offered will have durations ranging from three to twelve months, as stated by JPMorgan.

After regulators shut down First Republic, JPMorgan emerged as the winner in a competitive bidding process overseen by the FDIC. As part of the deal, JPMorgan made a payment of $10.6 billion to the corporation.

Some progressive voices, including Senator Elizabeth Warren of Massachusetts, have criticized the First Republic deal, expressing concerns about further consolidation and the expansion of America’s largest bank.