Silicon Valley, May 25, 2023 – First Citizens Bank, the recently-acquired owner of Silicon Valley Bank (SVB), has made the decision to lay off approximately 500 former SVB employees. This accounts for around 3% of the current workforce at First Citizens Bank. The layoffs come two months after First Citizens Bank completed the acquisition of SVB, which had faced significant challenges leading to its collapse.
In a letter addressed to employees on Wednesday, First Citizens Bank Chairman, Frank Holding, acknowledged the difficulties faced by SVB at the beginning of 2023. Holding stated, “Given the circumstances, it has become clear that we must continue optimizing the scope and size of our organization in order to maintain competitiveness.”
Reports indicate that the layoffs primarily impacted SVB’s corporate and executive staff, as these positions were deemed redundant following the takeover. The layoffs were a necessary step in aligning the combined organization’s structure and streamlining operations.
It is worth noting that the majority of employees affected by the layoffs were working in SVB’s commercial banking business, while the private wealth management division was relatively unaffected.
First Citizens Bank remains committed to ensuring a smooth transition and providing support to employees during this period of change. Efforts are being made to assist affected employees in their career transitions, including offering severance packages and employment support services.
The acquisition of SVB marked an important milestone for First Citizens Bank, expanding its presence in the tech-focused Silicon Valley region. The bank’s strategic decision to optimize its organizational structure reflects its commitment to remaining competitive in a dynamic and evolving market.
As the integration process continues, First Citizens Bank will focus on leveraging the combined strengths of both institutions to deliver enhanced services and value to its customers. The bank remains optimistic about the future and is dedicated to building a resilient and successful organization in the ever-changing financial landscape.