WASHINGTON – CUNA, struggling with large losses on its investments, announced another round of lay-offs yesterday, eliminating 18 positions in its Madison, Wis., offices.
The lay-offs are part of an effort to trim operating expenses in the face of millions of dollars of losses on investments. Earlier this year CUNA announced it eliminated eight positions in late 2008, cut matching contributions on employee retirement plans and directed all employees to take a week unpaid furlough.
"The steps we have taken to reduce staff positions are painful ones, especially for those directly impacted," said CUNA President Dan Mica in a statement. "Individual performance was not a factor in these decisions, which have been driven by the economy and its impact on CUNA’s financial position."
CUNA reported a $5.7 million loss for 2007 and an $8 million loss for 2008, due to major losses on its investment portfolio.
Over the last two years CUNA has seen a major decline in its investments, which fund retirement benefits and future obligations. The investments, which are 40% in equities and 60% in fixed-income instruments, were up $1.2 million in 2007, but down, with the rest of the markets, by $3.3 million in 2008. Though the investments fluctuate on a daily basis, Mica noted they were up by $430,000 through the middle of June, lending some hope for the year’s performance.
"Whether additional actions will be necessary in the future will be determined by the economy and its impact on our member credit unions, our invested reserves and on the accounting for our defined benefit plan," said Mica’s statement.
