KeyCorp cuts 244 positions, more cuts planned as bank seeks increase profits

By: Marcos Lebron

BUFFALO, NY — Twenty years ago, KeyCorp employed nearly 30,000 people. Now the number has dropped to less than half, to 13,359 and will be getting even smaller in 2016 and 2017

The recent announcement of Keybank and First Niagara pending merger will lead to further downsizing in staff mostly in the Buffalo and Western New York. Although, significant layoffs could happen in Massachusetts, Connecticut and Pennsylvania.

One analyst looks for Key to lose another 1,500 to 3,000 people in the next five years.

This news comes after the Cleveland-based bank, which employs 5,500 in Greater Cleveland, shed 244 positions companywide during the last quarter.

Chairman and CEO Beth Mooney said Thursday the bank has to start getting even leaner but needs to increase revenue too, saying, “You cannot shrink your way to prosperity.”

Mooney said the bank doesn’t have a target employment level in mind.

“We are managing it around projects, not people.”

Cleveland’s largest bank did enjoy a good quarter and year as profits were up slightly, at 1 percent, loan losses dropped in half and loan volume was up 7 percent from the third quarter, led by a nearly 21 percent increase in commercial and industrial loans. Customers are borrowing more as they get more confident, Mooney said, but mostly Key is taking marketshare from competitors. She noted that Key’s loan growth is ahead of most competitors.

Another highlight for the quarter: Loan losses declined to less than a half-percent of loans, which is the lowest level in more than five years.

Profits were $203 million in the fourth quarter, up from $200 million in 2011. Per share, profits were 21 cents compared with 20 cents a year ago. For the year, profits were $836 million, up from $813 million.

Key spent $16 million in the fourth quarter related to its efficiency effort, including severance packages to laid-off employees. It’s not known how many of the 244 eliminated positions stemmed from resignations or were already vacant. Those severance payments will ratchet up this year as the bank peels off more jobs by eliminating redundancy, combining some jobs and outsourcing some tasks so it doesn’t have to employ people full time for workloads that may fluctuate.

Key last July said it planned a new effort to cut expenses, pare back some of its nearly 1,100 branches and increase revenue.

Key actually gained employees in 2012 in part because of its acquisition of 37 HSBC branches in New York. But employment is down by 3,000 people in the last five years, and by 7,000 in the last 10 years.

Panorama Hispano is the regional news and information newspaper for Hispanic and other diverse communities.

US Hispanics are now the largest ethnic minority in the United States numbering 54.2 million as of July 2014. Serving: Buffalo, Rochester, Fredonia, Niagara Falls, NY and Erie, PA. Outside our Market area: Visit our affiliate at: http://www.impremedia.com/

Contact us: Contact@PanoramaHispanoNews.com

Featured News

Jun 22, 2024
Con la mira puesta en los pesos pesados, EEUU abre su campaña contra Bolivia

ARLINGTON, Texas, EE.UU. (AP) — ¿Cuándo Estados Unidos tumbará a una selección de alto calado en un gran torneo de […]

Read More
Jun 20, 2024
Climate change made killer heat wave in Mexico, Southwest US even warmer and 35 times more likely

WASHINGTON (AP) — Human-caused climate change dialed up the thermostat and turbocharged the odds of this month’s killer heat that has been baking […]

Read More
Jun 14, 2024
US diplomat warns of great consequences for migrants at border who don’t choose legal pathways

MEXICO CITY (AP) — U.S. Ambassador to Mexico Ken Salazar warned Thursday that migrants who do not opt for a legal pathway […]

Read More

popular categories

Featured (5,084)
Mundo Latino (2,014)
Locales / Regional (1,105)
Buffalo (2,044)
Dunkirk (1,611)
Rochester (1,590)
PA (1,191)
Negocios / Tecnología (986)
Tecnología y Science (202)
Salud (555)
Deportes (839)
Entretenimiento (753)
Extras (417)
Movies (211)
Viajes, Vida y Estilo (680)
Copyright © 2024 Panorama Hispano News. All Rights Reserved.
crossmenuchevron-downmenu-circlecross-circle
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram