SVB collapse: Bank quietly laid off more than 100 employees before closure

Silicon Valley Bank rTwo months prior, more than 100 employees were reportedly fired Regulators A company email revealed that someone came in and closed the business down.

The January email to employees seemed to concentrate on non-client-oriented positions such as recruiting. It also mentioned “change and uncertainty” In the The economic future of a company This is the main reason for the layoffs.

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“Unfortunately, our efforts to slow spending over the past several months have not been enough and these reductions are necessary,” The email was obtained by NBC News Please read.

Other companies in California’s Silicon Valley also had to reduce their staffs when the layoffs occurred. Meta, Facebook’s parent, was among those affected, as were smaller companies like Twilio. Companies were forced to take a more conservative approach by the Federal Reserve, reducing their interest rates and reversing some of the COVID-19 hiring rush.

Gregory Becker, CEO at SVB, said that while the company was hiring people to fill in for vacant slots on the payroll, they would also be hiring employees. “cheaper” They were more than the people they replaced.

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At the time of the bank’s closure, employees received bonuses. A retention bonus was also awarded to employees in order to prevent them from leaving the bank before it was closed completely.

President Joe Biden Sunday’s statement by the federal government stated that it will not bailout banks but he guaranteed SVB deposits include uninsured amounts so that customers could have their money on Monday. There is a risk that the country might experience another economic crisis after the closing of one the country’s largest banks. The White House assured that this was not true.