JPMorgan Chase & Co. has reported that 1,000 First Republic Bank employees did not get jobs – even temporarily – after its takeover of the failed lender.
The largest U.S. bank on Thursday offered full-time or transitional roles to nearly 85% of the roughly 7,000 employees still working at First Republic when it collapsed, while the rest were told they wouldn’t get offers, according to a person familiar with the article. Temporary positions will be for three, six, nine or 12 months, depending on the job, said the person, who asked not to be identified discussing private information.
“Since our acquisition of First Republic on May 1, we have been transparent with its employees and kept our promise to update them on their employment status within 30 days,” a spokesperson for New York-based JPMorgan said in a statement. “We realize they have been under pressure and uncertainty since March and hope today brings clarity and closure.”
The spokesperson said that former First Republic employees who were not offered jobs at JPMorgan “will receive 60 days of salary and benefits coverage and will be offered a package that includes an additional lump sum and ongoing benefit coverage.”
First Republic said in late April it would cut up to 25% of its workforce, in one of a series of measures aimed at supporting the ailing bank and reassuring investors. These measures were ultimately not enough, and the San Francisco-based company was taken over days later. Most of the employees who didn’t get Thursday’s offer from JPMorgan were slated as part of First Republic’s planned cuts, the person said, but were not yet notified of the bank’s failure.
JPMorgan, which had 296,877 employees at the end of March, outperformed its rivals in a government-led auction for the First Republic. As part of the winning bid, JPMorgan took about $173 billion in First Republic loans, $30 billion in securities and $92 billion in deposits — then had to decide what to do about its employees, dozens of whom were reeling by more than 10 percent. Millions of dollars. year, Bloomberg News reported earlier Thursday.
