JP Morgan Chase lays off around 1,000 employees of First Republic Bank

JP Morgan Chase is laying off nearly 1,000 employees at First Republic Bank nearly a month after it was taken over by regulators.

The vast majority of First Republic employees, roughly 7,200 before it ran into trouble, were offered jobs by JPMorgan, meaning about 15 percent of the bank’s staff was let go.

First Republic cut about 25 percent of its workforce before JPMorgan stepped in. 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.

(Only the title and image for this report may have been reworked by the Business Standard team; the rest of the content is generated automatically from a shared feed.)

First published: May 26, 2023 | 9:45 p.m ist