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News Now

CU System
Members United Corporate closes Minn. branch
WARRENVILLE, Ill. (6/16/09)--Members United Corporate FCU will cut its work force by 39 employees and close its Eagan, Minn., branch in 2010 to curtail costs and eventually build capital. The separation dates for the employees will be staggered, Victor Vrigian, Members United senior vice president of marketing, told News Now. The cuts are on top of 84 positions eliminated at the corporate in December. David Preter, president of the corporate, was among the staff reductions in December. After a one-time charge in June for severance and other benefits, Members United said the latest reduction in work force and other changes will result in ongoing savings to its operations of $6.5 million per year--$5.9 million of this will be realized in 2010. When fully implemented, and added to the reductions made last December, the reductions will reduce the corporate’s workforce by 38%. The cuts will realize an ongoing operational cost savings of $18.9 million per year. Reductions have occurred at all levels of the organization. Members United will reduce the size of its office space in Auburn, Mass., in 2009, and Indianapolis in 2010. “The actions announced Friday, although difficult, are a necessary response to the ongoing financial crisis,” said Joseph P. Herbst, Members United CEO. “Moreover, these changes are an essential building block toward the rebuilding of Members United as a smaller, leaner corporate credit union.”


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