JP Morgan Cuts 1,000 Jobs at Acquired First Republic Bank

Job Cuts at First Republic Bank

Wall Street giant JP Morgan Chase is implementing job cuts at First Republic Bank, a failed US lender that it recently acquired. Approximately 1,000 positions, which account for 15% of First Republic’s workforce, will be eliminated. This move follows the announcement of job cuts by First Citizens, the buyer of another troubled lender’s US unit. The financial difficulties faced by regional banks earlier this year raised concerns about a potential broader crisis in the banking sector. 

JP Morgan’s Measures and Employee Support

JP Morgan confirmed that the job cuts would affect workers at the San Francisco-based First Republic Bank, although an exact figure was not provided. The affected employees will receive pay and benefits for a 60-day period and will be offered a package that includes a lump sum payment and additional benefits. JP Morgan is committed to assisting these employees in finding new roles, either within or outside the company. The bank has been transparent with the employees of First Republic since the acquisition and has honored its promise to provide updates on their employment status within 30 days. 

First Republic Bank, known for its significant home loan business and affluent client base, ranked as the 14th largest lender in the US at the end of the previous year. In April, the bank experienced challenges following the collapse of several other US lenders, including Silicon Valley Bank (SVB). Customers’ concerns about the banking system led to around $100 billion in deposit withdrawals from First Republic. To address these issues, JP Morgan agreed to take over First Republic for $10.6 billion, under the supervision of regulators.