May 25 (Reuters) – JPMorgan Chase & Co (JPM.N) has told nearly 1,000 First Republic Bank employees that they will be out of jobs as it integrates the failed lender that bought it earlier this month, a person said who was familiar with the Reuters case Thursday.
JPMorgan, the largest U.S. bank, has offered employment to about 85% of First Republic’s nearly 7,000 employees in temporary or full-time positions, the source said. Temporary positions were estimated to last from three months to a year, depending on the job, the person said.
“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.
Employees who have not been offered positions will receive wages and benefits for 60 days and will be offered packages that include additional lump sum payments and ongoing benefits, the bank said.
First Republic became the largest US bank to fail since 2008 after it was seized by regulators in early May and sold to JPMorgan.
“In terms of job losses, we would like to emphasize that JPMorgan typically hires tens of thousands of people each year in the United States, which means there are many opportunities for career redeployment,” Jeremy Barnum, JPMorgan’s chief financial officer, told reporters. on May 1 when the deal was announced.
According to the source, there are currently more than 13,000 job openings at JPMorgan.
First Republic was under siege during the March banking crisis as depositors fled in droves, rocked by the collapse of two other medium-sized lenders.
Despite receiving a $30 billion lifeline from 11 major banks, shareholders continued to sell First Republic stock. Depositors withdrew $100 billion from their lender accounts in the first quarter, causing it to collapse weeks later.
Bloomberg News was the first to report job losses.
Reporting by Nupur Anand in New York and Manya Saini in Bengaluru; Edited by Anil D’Silva and Deepa Babington
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