First Citizens BancShares Inc.—which purchased the assets of Santa Clara-based Silicon Valley Bank in March after its dramatic collapse—has laid off about 500 former SVB employees.
A message from First Citizens Bank CEO Frank Holding to the company’s employees said, “It is increasingly clear that we must make decisions to right-size our scope and scale to remain competitive.”
Holding wrote that the layoffs did not include any client-facing positions or any members of the company’s support team in India.
Laid-off workers were told in meetings with human resources staff they would remain employees of the bank until June 9, with additional details about severance coming via email. According to one director-level employee, additional layoffs may be coming.
No WARN notices have yet been filed with the state of California regarding the job cuts.
In the immediate wake of the acquisition, SVB employees complained about a culture clash between the two companies as the North Carolina-based financial institution took over what was for decades a key financial driver for the tech sector.
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First Citizens does not have the same history of supporting startups and the tech sector as SVB, but company executives have pledged to continue the bank’s legacy in that field.
Additionally, a number of top-level executives and bankers left for roles at other companies. PitchBook reported this month that nearly 80 senior bankers have been poached from SVB by companies like HSBC, Stifel, Moelis and Company, and JPMorgan Chase.