JPMorgan is laying off roughly 1,000 employees of First Republic Bank, which it acquired on May 1.
About 85% of First Republic’s roughly 7,000 employees were told they can stay with the bigger bank.
On Monday JPMorgan said it will also be closing some First Republic bank branches.
JPMorgan has notified roughly 1,000 employees of First Republic Bank, which it acquired earlier this month, that they won’t be staying on with the bank.
About 85% of First Republic’s roughly 7,000 employees have been given full-time or transitional roles.
“The vast majority of First Republic employees will be offered employment at JPMorgan Chase – either through a transition period, or in many cases full-time,” a JPMorgan spokesperson said in a statement. “Employees who have not been offered a role will receive pay and benefits covering 60 days and will be offered a package that includes an additional lump sum payment and continuing benefits coverage.”
The spokesperson said the bank is also providing resources to help laid-off workers find new work either at JPMorgan or outside the firm. The nation’s largest bank by assets currently has thousands of job openings. The bank declined to identify which divisions of First Republic were impacted by the layoffs.
JPMorgan agreed to buy First Republic Bank after the FDIC seized control on May 1. The fire sale ended weeks of speculation about what might happen to the nation’s 14th-largest bank before it was besieged by deposit withdrawals and questions about its survival.
JPMorgan benefits from purchasing First Republic, which has consumer bank branches in many well-to-do cities, including Los Angeles and New York City. The San Francisco bank also has a strong record catering to customers JPMorgan is eager to attract, including startups and their founders.
The bank on Monday told investors that its purchase of First Republic was already paying off. The bank said it expects net interest income, or the margin between what a bank pays on deposits and what it earns on loans, to rise by $3 billion this year, thanks to its deal for First Republic Bank earlier this month.
The bank also said it expects to close some First Republic branches, including those that are too near each other or to JPMorgan branches.
“Since our acquisition of First Republic on May 1, we’ve been transparent with their employees and kept our promise to update them on their employment status within 30 days,” the JPMorgan statement said. “We recognize that they have been under stress and uncertainty since March and hope that today will bring clarity and closure.”
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