Several colleagues will be separated on 9/14 ahead of the 9/17 deadline for those offered voluntary retirement packages. Not sure of percentage of exact number. Large budget cuts will follow as interest rates stay near 0 at the federal level until 2022.
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The persistent, low interest rate environment is expected to created headwinds for the financial services industry through 2023. As a result, Associated Bank is taking multiple actions to help manage expenses in a manner that enables us to continue to meet the needs of our shareholders while also delivering value to our customers, (i.e. they declare a dividend)
In support of this direction, each line of business and department must reduce its total budget spend. This includes a reduction of staff for many areas across the entire organization.
Current Staffing Changes:
Retirements - company made it the initiative to force individuals into early retirement if they were eligible
Position Eliminations: Company decided to open up the gates and reduce staff by indicating it was a difficult decision to eliminate, as the CEO reads letters from customers indicating the difficulty of making mortgages payments, etc. in town hall meeting.
They indicated they don't anticipated additional actions, but not sure how they will address their loan loss provisions going forward, From $2million in 3rd QTR 2019 to $40 million in 3rd QTR 2020. Not sure the sale of Associated Financial Group will stop the hemorrhaging.