JPMorgan, a leading global financial services company, recently laid off approximately 1,000 former employees of First Republic Bank, shortly after acquiring the struggling lender. The bank clarified that about 85 percent of First Republic’s 7,200 employees were offered either full-time or transitional roles within JPMorgan.
From the outset, the company maintained transparency with the former First Republic employees, making it clear that not all would be retained. In a statement, it assured that the majority of First Republic employees would be provided employment opportunities within JPMorgan Chase, either through a transition period or full-time positions. However, those who were not offered a role would receive pay and benefits for 60 days, along with an additional lump sum payment and continuing benefits coverage. JPMorgan also committed to supporting them in finding new opportunities within or outside the company.
JPMorgan emphasised that the scale of the layoffs was smaller than the 20 to 25 per cent reduction announced by First Republic in April. Most of the employees laid off had already been identified back then. JPMorgan took over First Republic on May 1 after successfully bidding for it in an FDIC auction. First Republic, headquartered in San Francisco, has become the fourth U.S. bank to fail this year and marks the second-largest bank failure in the history of the United States.
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