JPMorgan tells 1,000 First Republic employees they're losing their jobs

JPMorgan tells 1,000 First Republic employees they're losing their jobs
The bank offered full-time or transitional roles to almost 85% of the nearly 7,000 employees still working at First Republic when it collapsed, and told the rest they wouldn't get offers.
MAY 25, 2023
By  Bloomberg

JPMorgan Chase & Co. notified about 1,000 First Republic Bank employees that they aren’t being given jobs — even temporarily — following its takeover of the failed lender.

On Thursday, the biggest U.S. bank offered full-time or transitional roles to almost 85% of the nearly 7,000 employees still working at First Republic when it collapsed, while the rest were told they wouldn’t get offers, according to a person with knowledge of the matter. The temporary jobs will be for three, six, nine or 12 months, depending on the position, the person said, asking not to be identified discussing private information.

“Since our acquisition of First Republic on May 1, we’ve been transparent with their employees and kept our promise to update them on their employment status within 30 days,” a spokesperson for New York-based JPMorgan said in a statement. “We recognize that they have been under stress and uncertainty since March and hope that today will bring clarity and closure.”

Former First Republic employees who weren’t offered jobs at JPMorgan “will receive pay and benefits covering 60 days and will be offered a package that includes an additional lump-sum payment and continuing benefits coverage,” the spokesperson said.

First Republic said in late April it would cut as much as 25% of its workforce, one of a series of actions intended to bolster the troubled bank and reassure investors. Those measures ultimately weren’t enough, and the San Francisco-based company was seized days later. Most of the employees who didn’t get an offer Thursday from JPMorgan had been identified as part of First Republic’s planned cuts, but had yet to be notified when the bank failed, the person said.

JPMorgan, which had 296,877 employees at the end of March, beat out rivals in a government-led auction for First Republic. As part of its winning bid, JPMorgan acquired about $173 billion of First Republic’s loans, $30 billion of securities and $92 billion in deposits — and then had to decide what to do about First Republic's employees, dozens of whom were reeling in more than $10 million a year, Bloomberg News reported earlier Thursday. 

Latest News

Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York
Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York

Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.

UBS loses arbitration battle in fiduciary fight over foundation funds
UBS loses arbitration battle in fiduciary fight over foundation funds

A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.

RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee
RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee

NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.

Three easy ways to boost your firm’s impact this summer
Three easy ways to boost your firm’s impact this summer

Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.

Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite
Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite

Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.