WARRENVILLE, Ill. – Members United Corporate Federal Credit Union announced today that it will make budget cuts that will dismiss 20% of its workforce, including former Mid-States Corporate CEO and current President David A. Preter.
"Members United has seen a reduction of approximately $6 billion in assets from its peak of $15 billion in March of this year due to the continuing market dislocations," said CEO Joseph P. Herbst. "…this reduction in the size of our balance sheet affects our ability to cover expenses at current levels and grow retained earnings."
The $9 billion Members United will reduce its operating budget from initial 2009 projections by approximately $10 million. These reductions will come from reduced spending on programs, infrastructure and product development, outside commitments and direct subsidies. Staff reductions will trim expenses by approximately $5 million.
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"Following the merger between Mid-States and Empire corporates, Members United experienced tremendous growth," Herbst said. "Responding to that growth, the corporate assembled an extremely talented staff to support its operations and to position it for further growth in the future. But as 2008 draws to a close, that situation has changed."
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