On Thursday, JPMorgan Chase informed around 1,000 First Republic Bank employees that they would be losing their jobs.
The majority of First Republic’s assets were acquired by JPMorgan earlier this month when the government seized the regional bank with headquarters in San Francisco. The second-largest bank failure in US history occurred as a result.
Offering Temporary Positions
According to a JPMorgan representative, the bank informed all First Republic Bank employees about their future job status on Thursday, and the vast majority of them, or approximately 85%, have been offered temporary or full-time positions.
A total of 1,000 First Republic Bank employees, or 15%, are still waiting on a job offer. The Financial Times had already reported on the impact on jobs.
According to JPMorgan, not all workers were included in the company’s May 1 agreement with the Federal Deposit Insurance Corporation to purchase the majority of First Republic.
JPMorgan stated in a statement, “We’ve been open and honest with their employees and maintained our promise to update them on their job status within 30 days. We acknowledge that since March, they have been experiencing stress and uncertainty, and we anticipate that today will provide a resolution.
Salary and Benefits for next 60 days
The bank stated that employees who have not been given a position would get salary and benefits for the next 60 days and will be given the option to accept a package that includes an additional lump payment, ongoing benefits, and tools to find other employment.
It’s unclear how many First Republic Bank employees who have accepted job offers at JPMorgan will have full-time positions as opposed to temporary ones.
Some First Republic employees will be offered transitional roles that will last for three to twelve months, according to JPMorgan.
The FDIC conducted a competitive bidding process, which JPMorgan won after authorities forced First Republic to close. JPMorgan agreed to provide the company a payout of $10.6 billion.