JP Morgan, the new owner of the First Republic Bank, has announced that it will be cutting 1,000 jobs as part of its effort to streamline the bank’s operations. The majority of the layoffs are expected to come from First Republic’s technology and back-office divisions. This cost-cutting could affect up to 16% of the bank’s workforce.
The company stated in an email to employees that the layoffs were being made to “enhance operational efficiency” and “ensure ongoing competitiveness.” These layoffs will take effect in the next few months, and were a result of the “detailed review of our business operations” that JP Morgan began shortly after it acquired the bank earlier this year.
The bank’s leadership has stated that they are committed to providing affected employees with ample notice, severance, outplacement assistance, and generous benefits package. They also emphasized that the layoffs would not impact the bank’s service to its customers, who will continue to benefit from the same level of customer service that they have come to expect.