Gediminas Jasionis

KeyCorp (NYSE: KEY) is shifting its work force

by Gediminas Jasionis January 15, 2009
KeyCorp logoKeyCorp (NYSE: KEY) , a bank holding company, announced plans to shift jobs from its failing facility to other facilities. The Tacoma facility is planned to be closed this year, eliminating 200 jobs in all. However, a majority of the workers will be transferred to other cities; 70 jobs will be transferred to a call center in Buffalo and another 70 to Cleveland. No comment has yet been issued on the remaining 60 positions.

Also, the company plans to open a new call centre in Amherst, thus creating additional 70 jobs. This facility is planned to go into business after the close of Tacoma call centre.

Such changes were made in order to cut costs. KeyCorp has been experiencing a setback in income and net revenues for the last several quarters. Although the shift in jobs isn't likely to change much in this multimillion dollar business, this might indicate the beginning of a corporate downsizing.

KEY_chart.png

The net loss over previous quarters was mostly caused by increased loan loss provision costs. This item is unlikely to change because of the workforce redistribution though. This means, that, while the market is experiencing a downturn, the company is likely to continue experiencing losses.

References:

KeyCorp (KEY) message board on HotStocked

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