(Alliance News) - JPMorgan Chase & Co will be cutting around 1,000 First Republic employees following its takeover of the bank earlier this month, the Financial Times reported on Thursday.

The job losses are equal to 15% of First Republic's workforce, which stands at roughly 7,000 workers.

JPMorgan notified the affected First Republic employees on Thursday that they would not be receiving an offer to move to JPMorgan, the FT reported.

At the beginning of May, JPMorgan told investors it had taken over First Republic, after California regulators seized the troubled bank.

As part of the transaction, it assumed all deposits - insured and uninsured. This amounted to around USD92 billion of deposits, including USD30 billion of large bank deposits. JPMorgan also bought the "substantial majority" of First Republic Bank's assets, including about USD173 billion of loans and approximately USD30 billion of securities.

It did not, however, buy First Republic's corporate debt or preferred stock.

"We recognise that they have been under stress and uncertainty since March and hope that today will bring clarity and closure," the bank said, according to the FT.

"The vast majority of First Republic employees will be offered employment at JPMorgan Chase — either through a transition period, or in many cases full-time."

The bank said that employees who had not been offered a new position would receive pay and benefits for two months and will be offered a lump-sum payment with continuing benefits, the FT added.

https://www.ft.com/content/935fa23a-c295-4ba0-abd5-63fcf9649609

By Holly Beveridge, Alliance News reporter

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