WARRENVILLE, Ill. – Members United Corporate FCU, which reported a $511 million loss last month, said Friday it is embarking on its second round of lay-offs, eliminating 39 full-time positions and closing its Minnesota office.
The cost-cuts follow December’s 20% staff reductions, including that of the corporate’s President David Prieter. The $9 billion corporate plans to have cut a total of 123 positions, or 38% of its total workforce, by the end of the year.
The latest round of cuts is expected to produce $6.5 million in annual cost savings.
Members United also plans to reduce the size of its offices in Massachusetts and Indiana.
"This is not a change in our commitment to our relationships or member service in those important markets," said Joseph Herbst, president of Members United, in a letter to members on Friday. "Rather, by taking advantage of improved telephony and computer technology, our local staff will be able to work seamlessly out of home offices."
"Our immediate short-term plan calls for strict cost control, meeting liquidity demands, concentration on core markets and businesses, high quality member service and transparency," said Herbst.
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.
