JPMorgan Jettisons 1,000 First Republic Employees

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 firm 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 its employees, dozens of whom were reeling in more than $10 million a year, Bloomberg News reported earlier Thursday.

(Image: Bloomberg)