[1/2] The exterior of JPMorgan Chase headquarters in New York City on May 20, 2015.Reuters/Mike Seeger
May 25 (Reuters) – JPMorgan Chase (JPM.N) will lose nearly 1,000 First Republic Bank employees jobs as it merges with the failed financial institution it bought earlier this month Officials said they were notified. Reuters on Thursday.
JP Morgan, the largest US bank, is offering temporary or full-time jobs to about 85% of First Republic’s roughly 7,000 employees, the people said. According to the person concerned, the period of temporary work depends on the type of job, but it is estimated that it is about three months to a year.
“We have kept our promise to be transparent with our employees and to update them on their employment status within 30 days,” JPMorgan said in an emailed statement.
Employees who are not offered a role will receive 60 days of salary and benefits, as well as a package that includes additional lump sums and ongoing benefits, the bank said.
First Republic became the largest U.S. bank to fail since 2008 after being seized by regulators and sold to JP Morgan in early May.
Jeremy Burnham of JPMorgan said: “In relation to job losses, JPMorgan would like to highlight that the regular course employs tens of thousands of people in the US each year, which means there are many opportunities for career relocation. would,’ he said. The company’s chief financial officer (CFO) told reporters on May 1, when the deal was announced.
JP Morgan currently has more than 13,000 job openings, people familiar with the matter said.
First Republic was under siege during the March banking crisis, and depositors fled en masse, terrified by the collapses of two other midsize lenders.
Despite receiving lifelines of $30 billion in deposits from 11 major banks, shareholders continued to sell shares in First Republic. Depositors withdrew $100 billion from financial institutions’ accounts in the first quarter, and within weeks the institutions were headed for collapse.
Bloomberg News was the first to report the job losses.
Reporting by Nupur Anand from New York and Manya Saini from Bangalore.Editing: Anil DiSilva and Deepa Babington
Our criteria: Thomson Reuters Trust Principles.
