JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs
JPMorgan (NYSE:JPM) will close 21 First Republic Branches amidst the bank’s latest layoffs.
The bank cut 500 additional jobs this week following the new layoffs in First Republic Bank where more than 1,000 employees were notified of being let go.
Reuters reports JPMorgan will close these 21 branches by the end of the year.
The locations account for about a quarter of First Republic’s 84 branches across eight states.
The lender, which was the largest to collapse since the 2008 financial crisis, was seized by regulators in May and sold to JPMorgan.
“The cuts are a further blow to First Republic employees, who have already had a challenging two months.
Following the collapse of Silicon Valley Bank and Signature Bank in March, customers of First Republic withdrew tens of billions of dollars of deposits and the lender was ultimately shuttered by US regulators and sold over a weekend to JPMorgan,” said FT.
“These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,” the spokesperson said.
About 100 employees who are affected by the branch closures will be offered six-month transition assignments. After that, they will be eligible to apply for other roles at JPMorgan, which currently has 13,000 vacancies.
For those who are offered a job, they may be given either a permanent role or limited-term employment ranging from 3 to 12 months.
Since the takeover, First Republic employees have been left in the dark about their future with the company.
Other Bank Layoffs Happening Today
Morgan Stanely (NYSE:MS) recently cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank this week.
Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.
At the senior level, approximately 10 managing director dealmakers were cut in the region, the people added.
In January, Morgan Stanley’s rival Goldman Sachs laid off more than 3,000 employees and cut executive salaries.
Around 50 dealmakers were hit by the job losses in Emea, FN reported.
The ongoing deal triggered several big banks to trim their workforce this year.
Bank layoffs are expected to continue throughout the year.
The US bank’s latest job cuts will hit 3,000 roles globally across most of its key divisions, as it embarks on its second round of redundancies within the space of six months, says FinancialNews London.
Read: NYC is Freezing New Bank Deposits at Capital One
Bankers at Credit Suisse Quickly Throw in The Towel
Not only are big layoffs expected to occur with Credit Suisse, but hundreds of bankers have quickly begun to throw in the towel.
Swiss newspaper Blick reported earlier on Wednesday that each day around 150 people worldwide were resigning from Credit Suisse while one of the two people said they saw about 200 resignations a week.
Credit Suisse bankers, worried about their future are seeking safer employment at competitors, one person said.
People familiar with the matter declined to be named because they are not authorized to speak publicly, per Reuters.
UBS (NYSE:UBS) agreed on March 19 to take over its smaller Swiss rival as part of a rescue arranged by the Swiss authorities after a bout of market turmoil brought the struggling lender to the brink of collapse.
Credit Suisse said in April that the bank’s “employee attrition has been higher over the last year,” and that it had just over 48,000 full-time employees at the end of the first quarter and reported 50,480 full-time staff at the end of 2022.
UBS management has also said it would set a “very high bar” when deciding whether to retain any of Credit Suisse’s investment banking staff.
UBS has said it plans to wind down Credit Suisse’s investment bank, which employs about 17,000 staff, and the Swiss state has pledged 9 billion Swiss franc in guarantees to cover potential losses from the operation.
Read: Credit Suisse Stock is Now in Danger of Delisting
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