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JPMorgan Chase is laying off 335 employees in San Francisco who were part of its 2023 acquisition of First Republic Bank.
The layoffs, detailed in a WARN notice filed with the state, affect workers based at two downtown locations: 255 at 1 Front Street and 80 at 111 Pine Street.
Redundancies are scheduled to begin on January 10, 2025, marking the conclusion of 18-month contracts offered to many employees after the banking giant acquired the struggling First Republic Bank in May 2023. A JPMorgan Chase spokesperson clarified that the positions were temporary, designed to facilitate the integration of First Republic into the larger financial institution.
“These employees were on temporary assignment to support the remainder of the integration,” said the firm. “They were notified of their contract period in May 2023, with the option to find another role within the firm.”
Affected employees, many of whom held roles in technology, as well as positions in marketing, finance, operations, and data analytics, will be eligible for JPMorgan Chase’s severance pay plan, according to the filing.
First Republic bank troubles
First Republic Bank, a long-standing presence in California's financial sector, was once considered one of the nation’s premier regional banks. The bank struggled in 2023, however, due to its high concentration of uninsured deposits and a clientele similar to that of Silicon Valley Bank, which also collapsed that year.
Following a wave of customer withdrawals that drained over $100 billion from its accounts, First Republic was forced into receivership, and its assets were sold to JPMorgan Chase.
The acquisition included First Republic’s flagship offices, including the 111 Pine Street location, which has since been repurposed by JPMorgan Chase into a J.P. Morgan Financial Center aimed at affluent clients.
Banking sector challenges
The announcement comes amid broader scrutiny of the banking industry’s consolidation efforts. While JPMorgan Chase absorbed First Republic’s assets and staff to stabilize the bank’s operations post-failure, the wind-down of temporary contracts underscores the challenges of managing such large-scale acquisitions - a challenge that is inevitably handed on to the HR department to manage exits, severance packages and morale among remaining staff.
JPMorgan Chase has previously emphasized that affected employees had opportunities to seek other roles within the firm. However, the layoffs highlight the ongoing shifts in the banking landscape as regional banks face increasing competition and regulatory pressures.
First Republic Bank layoffs have drawn attention not only for their scale but also for the implications for San Francisco’s job market, particularly in sectors like technology and finance. The closures of temporary roles reflect JPMorgan Chase’s next phase of operations as it completes its integration of First Republic, a process that reshaped the fortunes of one of California’s most prominent financial institutions.
The banking giant has yet to announce whether further workforce reductions may occur as it continues to streamline its operations in the wake of the acquisition.
