[1/2] A view from outside of the corporate headquarters of JP Morgan Chase & Co. in New York City, May 20, 2015. Portal/Mike Segar
May 25 (Portal) – JPMorgan Chase & Co (JPM.N) has notified nearly 1,000 employees at First Republic Bank that they will no longer have jobs as the company sold the failed lender it bought earlier this month. integrated, a person familiar with the matter told Portal on Thursday.
JPMorgan, the largest U.S. bank, has offered employment for temporary or full-time positions to about 85% of First Republic’s nearly 7,000 employees, the source said. Temporary positions would take an estimated three months to a year, depending on the job, the person said.
“We have been transparent with their employees and have kept our promise to notify them of their employment status within 30 days,” JPMorgan said in an emailed statement.
Employees who have not been offered jobs will receive salary and benefits for 60 days and receive packages that include additional lump sum payments and ongoing benefit coverage, the bank said.
First Republic became the largest US bank to fail since 2008 after being seized by regulators and sold to JPMorgan in early May.
“In the context of any job losses, we want to emphasize that JPMorgan typically hires tens of thousands of people in the United States each year, which means there will be many opportunities for career change,” Jeremy Barnum, JPMorgan’s chief financial officer, told reporters on March 1. May when the deal was announced.
According to the source, there are currently more than 13,000 job openings at JPMorgan.
First Republic was beset during the banking crisis in March when depositors fled en masse, frightened by the collapse of two other mid-tier lenders.
Despite receiving $30 billion in deposit insurance, shareholders in 11 major banks continued to sell First Republic stock. Depositors withdrew $100 billion from their accounts in the first quarter, causing the lender to collapse weeks later.
Bloomberg News was the first to report the job losses.
Reporting by Nupur Anand in New York and Manya Saini in Bengaluru; Edited by Anil D’Silva and Deepa Babington
Our standards: The Trust Principles.