FEBRUARY 4, 2020 — 62 LAYOFFS IN RETAIL LOCKBOX UNIT IN MILWAUKEE, WISCONSIN
The bank has announced the discontinuance of its lockbox services and will be disbanding the unit with 62 layoffs in Milwaukee.
According to a company spokesperson, “We are focused on creating value for those who rely on us, and we recognize that our industry is transforming as new payment channels emerge. With these changing dynamics, we announced early last year that we would be discontinuing our retail lockbox service and processing, and investing instead in digital payment solutions.”
OCTOBER 23, 2019 — U.S. BANK TO UNDERGO MAJOR RESTRUCTURING WITH CLOSURES, LAYOFFS, AND OUTSOURCING
According to a company spokesperson, the bank is reacting to increased digitalization of the customer interaction and is planning a major reduction in force.
The company has not announced a specific number of employees to be laid off, but informed individuals have put the number in the low thousands and include assistant managers, teller coordinators, including administrative and support personnel.
According to the Bank’s CEO, Andy Cecere, “We are telling some employees that we have made the difficult decision to eliminate their jobs because customer behaviors have changed.
“Many of the bankers affected by this have been here for a long time, and they have all contributed to our success. They are valued, and we appreciate everything they have done. However, we have to think about what is right for the long-term health of our company, and for all of our employees and customers. At the same time, however, we will be creating new jobs and making a significant investment in training for our consumer bank to better support customer needs now and in the future.”
IT support of branch activities will be outsourced to a third-party technology firm. The bank continues to shrink its branch footprint to compensate for declining walk-in traffic.
UPDATE: OCTOBER 24, 2018 — U.S. BANK ANNOUNCES 700 ADDITIONAL LAYOFFS
A spokesperson for U.S. Bank has announced that “changing conditions” are responsible for the layoff of 700 bank employees. The spokesperson refused to identify which employees would be laid off, their location, or their positions. However, they added that these layoffs are in addition to the 260 previous layoffs in Ohio.
Employees of the bank suggested that the layoff may have impacted 1,000 employees rather than just 700.
Original post…
Minneapolis, Minnesota-based U.S. Bank, the seventh largest bank (by assets) in the United States, has announced that it will be laying off 260 employees and closing its Bedford, Ohio mortgage and consumer banking office. Work will be transferred to other U.S. Bank facilities. The decision to shutter the facility was based on the management of their real estate portfolio.
A company spokesperson, Molly Snyder commented …
"After a strategic review of our real estate footprint, we have made the decision to close the U.S. Bank satellite office in Bedford, Ohio, when its lease expires this fall."
It has been reported that the bank has also embarked on a quiet “talent optimization” scheme that sees affected employees rewarded with a “separation package” in return for a signed NDA (Non-Disclosure Agreement) that prevents the employee from publicly commenting on the separation or the bank itself. It appears that this is the bank’s preferred modus operandi as it avoids adverse publicity and the necessity to file WARN (Worker Adjustment and Retraining Notification) notices.
While the bank appears to be helped by the rising Fed interest rates, it also appears that the bank’s mortgage origination and servicing income are below expectations. Perhaps as a result of management’s aversion to risk in the mortgage market in a questionable economy.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?