JPMorgan to cut 1,000 workers in First Republic

JPMorgan Chase & Co. announced about 1,000 First Republic Bank employees who were not given a job – even temporarily – after it was taken over by the defaulting lender.

The largest U.S. bank on Thursday offered full-time or transitional roles to about 85% of the nearly 7,000 employees who were still working at First Republic when it collapsed, while others were told they would not receive offers, according to a person with knowledge of the matter. The temporary jobs are for three, six, nine or 12 months, depending on the position, said the person, who requested anonymity citing private information.

“Since our acquisition of First Republic on May 1, we have been transparent with their employees and kept our promise to update them on their employment status within 30 days,” a JPMorgan-based spokeswoman said. in New York said in a statement. “We know they have been under stress and uncertainty since March and hope today will provide clarity and closure.”

Former First Republic employees who were not offered jobs at JPMorgan “will receive salary and benefits covering 60 days and will be offered a package that includes additional lump-sum compensation and continued benefit coverage, ” the spokesman said.

First Republic said in late April it would cut up to 25% of its workforce, one of a series of actions intended to shore up the troubled bank and reassure investors. Those measures ultimately weren’t enough, and the San Francisco-based company was seized days later. Most of the employees who did not receive an offer Thursday from JPMorgan have been identified as part of First Republic’s planned layoffs, but have not yet been notified if the bank has failed, the person said.

JPMorgan, which has 296,877 employees at the end of March, defeat the opponents in a government-led auction for the First Republic. As part of its winning bid, JPMorgan acquired First Republic’s $173 billion in loans, $30 billion in securities and $92 billion in deposits — and then had to decide what to do about its employees, who dozens of them are raking in more than $10 million a year. year, Bloomberg News reported early Thursday.

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