JPMorgan lays off about 1,000 former First Republic employees

Photo by Can Pac Swire/ Flickr/ CC BY-NC 2.0

JPMorgan Chase & Co. laid off about 1,000 former First Republic Bank employees Thursday, weeks after its takeover of the failed lender.

The bank said about 85% of the former First Republic’s roughly 7,200 employees received full-time or transitional roles with JPMorgan.

JPMorgan JPM, +0.24% said it had been transparent from the beginning with the former First Republic employees that not everyone would be retained.

“The vast majority of First Republic employees will be offered employment at JPMorgan Chase – either through a transition period, or in many cases full-time,” JPMorgan said in a statement. “Employees who have not been offered a role will receive pay and benefits covering 60 days and will be offered a package that includes an additional lump sum payment and continuing benefits coverage. We’re also providing resources to help them find new opportunities here or outside the firm.”

JPMorgan noted that the cuts were smaller than the 20%-25% layoffs First Republic had announced in April, and said most of those laid off Thursday had been initially identified in April.

The New York-based banking giant took over First Republic on May 1 after winning an FDIC auction after a disastrous run on deposits that battered its stock. San Francisco-based First Republic became the fourth U.S. bank to fail this year, and was the second-largest bank failure in U.S. history.

Source: MarketWatch

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