First Republic cuts 1,000 jobs after the Bank of California was expropriated and sold to JPMorgan

NEW YORK – About 1,000 employees were laid off at First Republic Bank about a month after it was taken over by regulators and acquired by JP Morgan Chase.

The vast majority of First Republic employees, roughly 7,200 before it ran into trouble, were offered jobs by JPMorgan, which means about 15% of the bank’s staff has been laid off.

When First Republic failed and was bought by JPMorgan on May 1, JPMorgan executives said they planned to take 30 days to select new roles for First Republic employees and that not every employee would be guaranteed a job.

“We realize they have been under pressure and uncertainty since March and we hope that today will bring clarity and closure,” the bank said in a written statement.

First Republic cut nearly 25% of its workforce before JPMorgan got involved. The bank said bank employees who were not offered jobs at JPMorgan would receive an additional 60 days of salary and benefits. Additional payments to those let go will depend on how long they have worked for the First Republic.

First Republic Bank, headquartered in San Francisco, has become the second largest bank in US history. Regulators sold all of his deposits and most of his assets to JPMorgan Chase to restore order after the collapse of three banks, including Signature and Silicon Valley, and threatened to undermine confidence in the US banking system.

However, banks were unique because of the large uninsured deposits held by their customers and exposure to the technology industry, which was hurt by rising interest rates that made borrowing more expensive.