RIVERSIDE, Calif.-Altura CU, which posted a $6.1-million loss in 2008, said it will shutter two branches and convert a third to an electronic branch, in the process cutting 35 jobs, or 15% of its workforce.
The $958-million CU said it will be shuttering two branches and converting a third to an electronic branch. In tandem with the closures, Altura eliminated 35 jobs, or 13% of its workforce. The CU said it has chosen not to fill an additional 27 open positions over the past 12 months. The total number of eliminated and unfilled positions represents 20% of Altura's staff.
Altura CEO Mark Hawkins told CU Journal the troubles in the regional economy have led to hardships for the CU, but the blows of having to support the NCUSIF and the recent corporate conservatorships proved too much.
"This has been tough," he said. "Our area certainly has had its challenges during the economic downturn. The final straw was having to pay the NCUSIF and the corporates. We will have to pay more than $9 million, and that is on top of our loan losses. We sat down and looked at those branches we could live without, and those positions that were not absolutely critical to our moving forward."
Altura said its branch in San Jacinto, Calif., will close May 5, followed on May 7 by its branch in Coachella. A branch currently operating in Corona will transition to an electronic branch effective May 6.
Sixteen branch positions and 19 positions at Altura's headquarters were eliminated as part of the downsizing.
In an effort to minimize layoffs, Altura said it has implemented a series of cost-cutting measures. These include reducing benefits and compensation for all employees, including the senior management.
"Just like our members, every one of us is having to sacrifice during this economic downturn," Hawkins said.
All affected employees were offered severance packages, outplacement services and Altura loan modification packages, the CU noted. According to Hawkins, the cuts were deep, but are a one-time event.
"We definitely do not want to do this again, so we decided to inflict pain upon ourselves in such a way that we would not have to have more layoffs in the future. We've never done this before, and did not enjoy the experience."
Hawkins said the loan modifications the axed employees received are the same as those Altura has been making to members who have lost their jobs. In addition, he said Altura is helping them polish their resumes to help them find new jobs.
