JP Morgan will soon be offloading a number of branches affiliated with the troubled First Republic Bank that the financial behemoth purchased earlier this year. According to a company spokesperson, 21 branches of First Republic will be closed by the end of the year as part of the integration process with JP Morgan Chase & Co. These branches represent approximately a quarter of First Republic’s total 84 branches across eight states. First Republic Bank, which experienced the largest banking collapse since the 2008 financial crisis, was taken over by regulators in May and subsequently sold to JP Morgan, according to a recent report by Reuters.
The decision to close these branches was based on their relatively low transaction volumes, as well as their proximity to other First Republic offices, making them easily accessible to customers. Around 100 employees who will be affected by the closures will be provided with six-month transition assignments, after which they will have the opportunity to apply for other positions within JP Morgan. Currently, JP Morgan has 13,000 job vacancies.
Recent notifications indicated that approximately 1,000 employees would be losing their jobs, according to a source familiar with the situation. However, some employees have been offered temporary positions for periods ranging from three months to one year.
JP Morgan, the largest U.S. lender, currently employs over 296,000 individuals and operates 4,800 branches. The company plans to invest in opening more physical locations while also expanding its digital offerings, as communicated by its executives to investors last month.