US banking giants JP Morgan Chase and First Citizens cut 500 jobs each
US banking giants JP Morgan Chase and Silicon Valley Bank’s new owner, First Citizens, have cut around 500 jobs each, according to news reports.
JP Morgan Chase and First Citizens cut 500 jobs each
CNBC reports that JP Morgan Chase cut some 500 jobs last week, mostly from its technology and operations teams. The layoffs span the bank’s retail and commercial banking divisions as well as its asset and wealth management and corporate and investment banking functions.
Despite the job cuts, sources tell CNBC that JP Morgan Chase has about 13,000 open positions it is looking to fill.
JP Morgan is reportedly also trimming the workforce of its latest acquisition, First Republic Bank, which it bought from the US Federal Deposit Insurance Corporation (FDIC) in a deal worth $10.6 billion earlier this month. According to BBC News, around 1,000 staff, or 15% of First Republic’s total headcount, will be laid off.
First Citizens lays off 500 former SVB staff
First Citizens Bank, which acquired assets from beleaguered Silicon Valley Bank in March, also cut around 500 positions held by former SVB staff last week, according to a BBC News report.
In an email, the bank’s CEO Frank Holding wrote that the cuts would affect “select SVB corporate functions and do not include any personnel in client-facing positions”. Most of the roles that were cut belonged to SVB’s commercial banking business.
According to reports, the layoffs constitute less than 3% of First Citizen’s total workforce.
Both banks join US multinational Morgan Stanley in laying off employees. Earlier this month, Morgan Stanley was reportedly set to cut 3,000 jobs, or 5% of its global workforce, by the end of Q2 this year.
