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

NEW YORK –

About 1,000 workers of First Republic Bank are being let go a couple of month after it was seized by regulators and purchased by JP Morgan Chase.

The overwhelming majority of First Republic workers, roughly 7,200 earlier than it bumped into bother, have been provided jobs by JPMorgan, which means that about 15% of the financial institution’s workers have been let go.

First Republic lower roughly 25% of its workforce earlier than JPMorgan stepped in. Bank workers that aren’t being provided jobs at JPMorgan will get an extra 60 days of pay and advantages, the financial institution stated. Additional funds to these being let go shall be primarily based on how lengthy they labored at First Republic.

First Republic Bank, primarily based in San Francisco, turned the second-largest financial institution failure in U.S. historical past. Regulators offered all of its deposits and most of its property to JPMorgan Chase to revive order after three banks, together with Signature and Silicon Valley banks, collapsed and threatened to undermine religion within the U.S. banking system.

The banks have been distinctive, nonetheless, as a result of massive, uninsured deposits held by their prospects and publicity to the tech business, which had been hammered by rising rates of interest that made borrowing costlier.