Banc of California in Santa Ana has initiated another round of layoffs.
The company is planning to cut about 70 employees, about 9% of its workforce, and reduce its use of third-party advisers. The changes are expected to be completed by the end of the fourth quarter and should result in $15 million in annual cost savings, the $10.3 billion-asset company said Thursday in a regulatory filing.
The moves were meant to “align the company’s cost structure with its focused commercial banking platform,” Banc of California said in the filing.
Banc of California had roughly 770 employees as of March 31, down about 55% from a year earlier, according to data from the Federal Deposit Insurance Corp. Last year the company pared back in certain areas, selling its mortgage business and cutting 140 corporate jobs.
The company also announced that Lawrence Gee, chief accounting officer, would step down on Aug. 10. If a replacement is not found before then, John Bogler, chief financial officer, would serve in that role on an interim basis.
Banc of California has been trying to refocus its operations after facing some challenges in recent years. Management is looking to bring in more core deposits, diversify its loan portfolio and invest in technology.
It has also worked to improve corporate governance after former CEO Steven Sugarman was embroiled in a controversy. The issue centered on a $100 million stadium naming rights deal with the Los Angeles Football Club, a professional soccer franchise that listed Sugarman’s brother among its investors.
That eventually led to Sugarman’s abrupt resignation last year and a Securities and Exchange Commission investigation into a statement issued by the company about related-party transactions.