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Members United to lay off 27
WARRENVILLE, Ill. (9/21/10)--Members United Corporate FCU announced Friday it will reduce its work force again and close its Indianapolis, Ind., office. The current reduction will involve 27 employees and will occur in 30 days to allow for an orderly transition, according to Members United Corporate CEO Joseph P. Herbst. "The actions announced today, although difficult, are a necessary response to the ongoing financial crisis, changes in technology, and the pending changes to the corporate regulation," said Herbst in a formal statement from Friday. He noted the changes "are an essential building block toward a new business plan resulting in the rebuilding of Members United as a smaller, leaner corporate credit union while continuing to offer the value-added services, both new and existing, that our members need. "Expenses that totaled $55.6 million for the year ended Dec. 31, 2008, have been reduced to a going forward annual run rate of approximately $30 million--a 46% reduction," Herbst said. The layoffs will result in ongoing savings to the corporate's operations of more than $2 million per year. Since October 2008, Members United has reduced its overall staff from 327 to 171, a 48% reduction in force by the end of the 2010 reductions. The layoffs have occurred at all levels of the organization, said the corporate's memo to its member credit unions. Improved telephony and computer technology means the corporate's Indiana branch staff can work seamlessly out of home offices. Much of that work has already been transitioned from the Indiana facility, with no degradation of service, said the memo to members. The corporate will conduct town hall meetings to review its preliminary strategic, business and capital plans with its member owners, beginning Oct. 27.


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