JPMorgan to reportedly ax 1,000 First Republic jobs as integration begins
JPMorgan Chase has notified some employees of First Republic Bank that they are not being given jobs, even temporarily, as it starts to integrate the failed lender, a person familiar with the matter told Reuters on Thursday.
Jamie Dimon’s bank has offered employment to nearly 85% of First Republic employees in a transitional or full-time role, the source said.
The estimated working period for temporary roles will be three months to a year, depending on the job.
“We’ve been transparent with their employees and kept our promise to update them on their employment status within 30 days,” JPMorgan said in an emailed statement.
Regulators seized First Republic and sold its assets to JPMorgan in early May, in their effort to resolve the largest US bank failure since the 2008 financial crisis.
First Republic took one of the hardest knocks during the banking sector crisis in March, when depositors fled en masse, spooked by the collapse of two mid-sized lenders.
The bank tried to salvage itself from the turbulence, but its disclosure of more than $100 billion in outflows in the first quarter and a plan to explore new options drove shareholders to dump its stock.
Bloomberg News was the first to report on job losses.
First Republic also was paying dozens of employees more than $10 million apiece annually in the heyday before its collapse, Bloomberg reported.