Members United Lays Off 27, Closes Indy Office
The $9 billion Members United Corporate FCU announced in a letter to members Sept. 17 it would deliver pink slips to 27 employees, most of whom will leave the organization during the next 30 days.
President/CEO Joe Herbst said Members United would also close its Indianapolis location.
"This is not a change in our commitment to our relationships or member service in this important market," Herbst wrote about the Indiana office. "Rather, by taking advantage of improved telephone and computer technology our local staff will be able to work seamlessly out of home offices."
After a one-time charge for severance, benefits, and other charges, the moves will result in savings of more than $2 million per year, Herbst said. Annualized expenses for 2010 will be reduced to approximately $30 million, down 46% from 2008's expenses of $55.6 million.
Members United will have reduced its workforce by 48% since December 2008.