Painful layoffs now surge at a big US bank as a new announcement confirms the termination of more than one hundred employees.
Associated Bank announced it will lay off 120 of its 4,000 employees in an effort to cut costs while the bank furthers the strategic initiative it announced in 2021.
The bank layoffs amount to 3% of its entire workforce.
Associated Bank also plans to close 14 branches and will also sell around $2 billion in mortgages and investment securities, according to a report by American Banker.
“A Thursday press release indicated the bank identified $25 million to $30 million in expense reductions in 2024, comprising full-time employee reductions, branch consolidations and decreased discretionary spending,” reports BankingDive.
“Severance and other expenses ties to the reductions will cost the company $5 million in the fourth quarter of 2023.”
Meanwhile, Associated will hire 20 new relationship managers in markets including Milwaukee and Madison, Wisconsin; Chicago; St. Louis; and Minneapolis-St. Paul, Minnesota.
The new hires will set out to attract and deepen whole customer relationships including loans, deposits, treasury management and other services, the bank said.
“Since launching the first phase of our strategic plan in 2021, we’ve steadily executed on our plans to drive high-quality loan growth, expand our deposit capabilities and transform the digital experience for our customers,” CEO Andy Harmening said in a prepared statement.
“These efforts have resulted in strong balance sheet expansion, and better positioned us to attract, deepen and retain customer relationships.
While we continue to benefit from these initial efforts, we also plan to capitalize on our momentum through the next phase of our strategic plan,” he said.
Other Banking News Today
A Wells Fargo customer got her money stolen in a hack that momentarily wired more than $24K from the account overnight.
The small business owner says she didn’t even have to confirm the transfer, prompting concerns over Wells Fargo’s security capabilities.
Christina Haberkern said she was able to get the $24,500 back following the ordeal that lasted weeks, per The-Sun.
The Wells Fargo customer claimed that the money was transferred to an unknown account using the bank’s online banking services.
She filed the activity as fraudulent and closed down her accounts before opening new ones.
She claimed that a Wells Fargo spokesperson said she approved the transfer of funds, which are allegations that Haberkern denies.
Understandably, the customer was devastated over the entire situation.
She said: “I have to pay my taxes. It’s my business. It’s my life.”
She claimed that Wells Fargo told her that a fraud case would be opened and an investigator would get back to her within a 10-day window, according to a statement shared on Instagram.
Haberkern said she called for an update but was reportedly told that the investigation had been closed.
She claimed that the suspected thieves didn’t totally wipe out her bank account because it would’ve required her to confirm the transfer of funds.
Haberkern said she filed complaints to organizations such as the Federal Deposit Insurance Corporation and the Better Business Bureau.
The Wells Fargo customer said the amount had been returned to her account following a 37-day battle.
She said she had withdrawn the funds and closed her accounts.
“Everything is safe and secure now at my credit union. They are wonderful.”
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