MANHATTAN BEACH, Calif. - Kinecta Federal Credit Union officials confirmed the CU laid off 37 employees Nov. 1.
The $3-billion credit union, headquartered here, still is a "very financially sound organization," according to a statement released by Kinecta to The Credit Union Journal.
"However, over the last few years, our expense growth has outpaced revenue growth," the statement read. "With a few adjustments to our employee base, we were able to better align our business units and improve efficiency, thus being able to provide better product pricing for our members."
Kinecta said that in weighing this decision, it had to consider what was best for its members in the long run, noting, "while this was a very difficult decision, we feel it is in the best interest of our members."
Kinecta FCU said the 37 laid off employees all were in the back office, and represented 5.53% of its total workforce.
It said all impacted employees were given 60 days' notice, in addition to a "separation package" based on years of service.
The credit union said it also will offer its former employees resume-writing and outplacement assistance.
One former Kinecta employee, who requested not to be identified, said the subject of layoffs had been broached at an all-staff meeting Oct. 9.
On Nov. 1, the person said, employees appeared at work, were walked to human resources, asked for their name badges and told to clear out their desks and leave.
"We were out the door in about half an hour. It was cold-blooded," the former employee said.
