JPMorgan Chase & Co has intimated about 1000 First Republic Bank employees that they will not have a job as the banking giant integrates the failed lender which it bought earlier in May, said Reuters citing a person familiar with the matter.
JPMorgan is the largest US bank. It has offered employment to about 85 per cent of First Republic’s around 7000 employees for transitional or full time roles. It has been reported that temporary positions will last about three months to a year depending on the job.
“We’ve 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 that employees who have not been offered jobs will get pay and benefits for 60 days and will be offered package which’ll include additional lump sum payments.
First Republic became the largest U.S. bank to fail since 2008 after it was seized by regulators and sold to JPMorgan in early May.
Still many opportunities
“In connection with any job losses, we would emphasize that in the normal course, JPMorgan hires tens of thousands of people in the United States each and every year, which means that there will be many opportunities for career redeployment,” Jeremy Barnum, JPMorgan’s chief financial officer, told reporters on May 1 when the deal was announced.
There are reportedly more than 13,000 job openings at JPMorgan.
Depositors fled en masse from First Republic during the banking crisis in March. The scare was sparked by two other mid-sized lenders.
Despite receiving a $30 billion deposit lifeline from 11 major banks, shareholders continued to sell First Republic stock. Depositors pulled $100 billion from their accounts from the lender in the first quarter, pushing it toward its collapse weeks later.
News about the job loss was first reported by Bloomberg News.
(With inputs from agencies)
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