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JPMorgan lays off 1,000 First Republic Bank employees a month after its purchase

MADRID, 26 May.

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JPMorgan lays off 1,000 First Republic Bank employees a month after its purchase


JPMorgan Chase will take over around a thousand workers from the former First Republic Bank, an entity that had to be intervened at the end of April by the US authorities and whose assets the largest bank in the United States acquired on May 1st.

The workforce adjustment, which would affect approximately 15% of the workforce of some 7,000 employees of the regional bank, would have been notified this Thursday.

A spokesman for the entity confirmed to the 'BBC' chain the job cut, although he declined to confirm the number of those affected, adding that those affected will receive the salary and benefits equivalent to 60 days, together with a compensation package.

"Since our acquisition of First Republic on May 1, we have been transparent with its employees and have kept our promise to update them on their employment status within 30 days," a JP Morgan spokesperson said.

At the end of April, given the difficulties that the entity was going through, punctuated by the tensions affecting regional banks in the US, First Republic Bank had announced a staff adjustment that would mean the departure of around 25% of its workforce.

On May 1, US regulators announced the purchase by JPMorgan of the assets of the First Republic bank after its intervention and closure "to protect depositors", including the 84 offices of the regional bank.

This week, First Citizens Bancshares has dispensed with some 500 former employees of Silicon Valley Bank (SVB), just two months after the acquisition of the failed Californian bank, which became the first victim of the turmoil that shook the bank in March region of the United States.

First Citizens Bank completed an agreement with the Federal Deposit Insurance Corporation (FDIC) on March 27 to acquire assets of Silicon Valley Bridge Bank, the bridge entity created after the collapse of the SVB, at a discount of 16.5 billion dollars ( 15,035 million euros).