Minneapolis, Minnesota-based U.S. Bank, the seventh largest bank (by assets) in the United States, has announced that it will be laying off 260 employees and closing its Bedford, Ohio mortgage and consumer banking office. Work will be transferred to other U.S. Bank facilities. The decision to shutter the facility was based on the management of their real estate portfolio.
A company spokesperson, Molly Snyder commented …
"After a strategic review of our real estate footprint, we have made the decision to close the U.S. Bank satellite office in Bedford, Ohio, when its lease expires this fall."
It has been reported that the bank has also embarked on a quiet “talent optimization” scheme that sees affected employees rewarded with a “separation package” in return for a signed NDA (Non-Disclosure Agreement) that prevents the employee from publicly commenting on the separation or the bank itself. It appears that this is the bank’s preferred modus operandi as it avoids adverse publicity and the necessity to file WARN (Worker Adjustment and Retraining Notification) notices.
While the bank appears to be helped by the rising Fed interest rates, it also appears that the bank’s mortgage origination and servicing income are below expectations. Perhaps as a result of management’s aversion to risk in the mortgage market in a questionable economy.
Are you asking yourself, Am I Next?