First Citizens Bancshares, the North Carolina-based bank that acquired Silicon Valley Bank in March, laid off nearly 500 employees on Wednesday.
The layoffs, which represent less than 3% of First Citizens’ total workforce, affected employees in SVB’s commercial banking business. In an email to employees, First Citizens CEO Frank Holding Jr. said that the layoffs were necessary to “right-size” the company and “ensure that we are best positioned for long-term success.”
Holding said that none of the eliminated positions were “client facing,” nor were they India-based support staff. He also said that the company would be providing severance packages and outplacement assistance to affected employees.
The layoffs come as First Citizens is still trying to integrate SVB into its operations. The two banks have different cultures and different ways of doing things, and it has been a challenge to bring them together.
In addition to the layoffs, First Citizens has also closed some of SVB’s offices and eliminated some of its products and services. The company has said that it is committed to making SVB a success, but it is clear that the integration process is not going smoothly.
The layoffs are likely to be met with criticism from some quarters. SVB was a well-respected bank, and its employees were proud of their work. The layoffs will be seen as a sign that First Citizens is not committed to SVB’s long-term success.
However, First Citizens is a large and successful bank, and it is likely that it will be able to weather the storm. The company has a strong track record of integration, and it is likely that it will be able to bring SVB into its fold eventually.
In the meantime, the layoffs will be difficult for the affected employees. They will need to find new jobs, and they will need to adjust to a new company culture. However, with time and effort, they will be able to find success in their new roles.
Silicon Valley Bank collapsed in March 2023, becoming the second largest bank failure in U.S. history after Washington Mutual’s in 2008. The collapse was caused by a number of factors, including a concentration of deposits in tech startups, a lack of diversification, and a classic bank run. The collapse sent shock waves through the global banking system and led to a number of regulatory changes.