MADISON, Wis. – CUNA Mutual Group, coming off a $149 million loss for 2008, said last week it is cutting 73 positions as part of a plan to reduce expenses by $50 million a year.
Jeff Post, CEO of the credit union insurer, said affected employees, 52 in Madison and 21 outside of Madison, were notified Thursday, giving them 30 days notice before actual termination. Sixteen of the position are union jobs.
"They’ll have the usual outplacement service and severance packages, we are treating them with the respect they are due," Post told The Credit Union Journal.
As part of the cost cuts, CUNA Mutual is also moving from a defined benefit pension plan to a cash-balance pension plan. Though employees will retain what has been accrued in their defined benefit pension. The company is also achieving expense savings through project reductions and eliminations, reduction in contracted work, and reduced company travel.
