Following the collapse of SVB (Silicon Valley Bank), layoffs have ensued. Reports indicate that First Citizens Bank, the new owner of SVB, has terminated nearly 500 employees in the wake of its takeover of the financially troubled bank.
First Citizens Bank is implementing job cuts in the range of 500 positions previously held by SVB employees. In an email sent by Frank Holding, the CEO of First Citizens Bank, the challenges faced by SVB were highlighted. Holding clarified that the job cuts would mainly target specific corporate functions at SVB, sparing personnel in client-facing roles. Furthermore, the SVB operations team in India remains unaffected by these changes.
This wave of SVB layoffs is expected to impact approximately 3 percent of the overall workforce, with India currently insulated from the cuts. The acquisition of SVB by First Citizens Bank brought much-needed relief to the collapsed entity, which experienced financial difficulties due to increasing interest rates and significant customer withdrawals.
The collapse of SVB not only triggered a potential crisis in the US banking system but also reverberated across the country, causing widespread concern. Furthermore, the SVB crisis had repercussions for banking systems worldwide, leading to concerns and challenges.
Anticipated by some experts, the SVB layoffs reflect the ongoing struggles faced by the bank, despite its acquisition by First Citizens Bank. As SVB continues to navigate these difficulties, the layoffs are expected to commence in the near future.