First Citizens BancShares Inc., (“First Citizens Bank”) the recently acquired owner of Silicon Valley Bank (SVB), has initiated a staff reduction process resulting in the layoff of around 500 SVB employees. The job cuts, as communicated by First Citizens CEO Frank Holding in an email to all employees, excluded client-facing positions and the company’s support team in India. Holding emphasized the need to streamline operations to maintain competitiveness in the industry.
Affected workers were notified in meetings with human resources representatives that their employment with the bank would continue until June 9. Details regarding severance packages were subsequently provided via email. There is a possibility of further layoffs, according to a director-level employee. Following the acquisition, SVB employees have reportedly experienced cultural clashes due to the transition from a longstanding financial institution to First Citizens Bank.
SVB’s collapse in March marked it as the largest bank failure since the 2008 financial crisis. The bank held approximately $209 billion in total assets, placing it among the top 20 American commercial banks at the end of last year.