WARRENVILLE, Ill. – Members United Corporate FCU, one of a handful of large corporates reporting surging losses, announced today it is laying-off 20% of its employees, including its President David Prieter, in order to reduce expenses and conserve cash.
The $9 billion corporate has seen an outflow of $6 billion of its assets while unrealized losses on its investments have surged to$1.6 billion. Members United reported a $40.3 million loss for the month of September and a $27.9 million loss for the first three quarters of the year.
The corporate is the product of a 2007 merger of Empire State Corporate FCU, in Albany, N.Y., and Mid-State Corporate FCU, based here, which Prieter headed.
Prieter issued a brief statement yesterday, saying, "I leave Members United knowing that this decision is in the best interest of the members and that they are in very capable hands."
The lay-offs are part of a number of expense cuts aimed at savings of $10 million. The reductions will come from reduced spending on programs, infrastructure, and product development. Staff reductions will account for an estimated $5 million in cost savings.
