Chemical Bank cutting 7 percent of workforce, 230 employees - WNEM TV 5

Chemical Bank cutting 7 percent of workforce, 230 employees

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Source: WNEM Source: WNEM
MIDLAND, MI (WNEM) -

Chemical Financial Corporation has announced plans to cut seven percent of its employees and close dozens of branches following its recent merger.

The information became available through a filing with the United States Securities and Exchange Commission.

Impacted staff have been notified, and all layoffs are expected to be complete by Sept. 30.

Across both Michigan and Ohio, Chemical Bank employees 3,500 employees. The 7 percent reduction means that 230 people will lose their jobs, most of them in Michigan, according to Chemical Bank CFO Dennis Klaeser.

He went on to say that 20 percent of the cuts were in the Midland, Bay City, and Saginaw areas and that the layoffs were in all positions.

Some employees who lost their jobs may be re-employed, move to another branch or rehired as the company expands, according to Klaeser.

In connection with those layoffs, Chief Operating Officer-Business Operations, Leonardo Amat will also leave his position at the end of the month.

By the end of the fourth quarter, the bank plans to have closed at least 38 branches. Some of those branches will have business transferred to the closest available branch.

According to the filing, annualized cost savings from the restructuring initiative are expected to be approximately $20 million. 

Midland-based Chemical merged with Talmer Bank, headquartered in Troy, in 2016; making it the largest Michigan-based bank.

To read the filing for yourself, click here.

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