Bloomberg: JPMorgan will fire 1,000 First Republic employees

JPMorgan is laying off 1,000 employees in the acquired First Republic Bank. Sources reported this to Bloomberg news agency. First Republic Bank recently collapsed and was later bought by JPMorgan Chase, the largest bank in the United States.

JPMorgan Chase has now informed the employees who will have to leave of the decision. When the First Republic Bank of San Francisco collapsed, the regional bank employed nearly 7,000 people. The remaining employees will then be offered full-time positions or temporary contracts, depending on their position. These are three-, six-, nine-, or twelve-month contracts, according to the insiders.

Before the crash, the First Republic Bank itself said it would cut up to a quarter of its workforce to cut costs. In March, there was a lot of turmoil in the US banking sector after the collapse of Silicon Valley Bank and Signature Bank. This was because customers withdrew a lot of money from their accounts in these banks within a few days. The First Republic had the same problem.

“Since our purchase of First Republic on May 1, we have been transparent with their employees and kept our promise to inform them of employment status within 30 days. We are aware that they have faced significant stress and uncertainty since March and we hope this clarifies today”.