(Reuters) – JPMorgan Chase & Co (JPM.N) has told nearly 1,000 First Republic Bank employees they will no longer have a job as it merges with the failed lender it bought earlier this month, a person familiar with the matter said. . Reuters on Thursday.
The source said that JPMorgan, the largest US bank, has offered job opportunities to about 85 percent of the First Republic’s 7,000 employees in transitional or full-time positions. The person said the temporary jobs will last an estimated three months to a year, depending on the job.
“We have 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.
The bank said employees who were not offered their roles will receive salary and benefits for 60 days and will be offered packages that include additional lump sum payments and ongoing benefit coverage.
First Republic became the largest US bank to fail since 2008 after it was seized by regulators and sold to JPMorgan in early May.
“Regarding any job losses, we want to stress that in the normal course, JPMorgan employs tens of thousands of people in the US each year, which means there will be many opportunities for job redeployment,” Jeremy Barnum, JPMorgan CFO, told reporters at May 1st when the deal was announced.
The source said that there are currently more than 13 thousand vacancies in JPMorgan.
The First Republic was beleaguered during the banking crisis in March when depositors fled en masse, fearful of the collapse of two other medium-sized lenders.
Despite receiving $30 billion in deposits from 11 major banks, shareholders continued to sell First Republic shares. Depositors withdrew $100 billion from their accounts from the lender in the first quarter, sending it toward collapse weeks later.
Bloomberg News was the first to report the job losses.
(Reporting by Nupur Anand in New York and Manya Saini in Bengaluru; Editing by Anil D’Silva and Deepa Babbington
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