Los Alamos National Bank announced it is terminating 26 positions, or about 10% of its workforce, in an effort to reduce costs and boost its share price. John Gulas, the bank’s CEO, announced the layoffs in an open letter to the Los Alamos community.
Gulas said the decision to lay off 10% of its employees is based on a strategic business review that was conducted by the bank’s board of directors and senior executives.
“We took a hard look at our organization, from top to bottom, to analyze our expenses, how we do business and our business lines,” he explained. “We discovered during this review that our cost of doing business was 30-40% higher than banks similarly situated to us. In today’s competitive environment, we simply could not continue on that path.”
Gulas told the Albuquerque Daily Journal that the bank is reorganizing to reduce costs. It recently swapped out its older data-processing systems for newer ones and updated its staffing model. The bank also eliminated in-house management of two business lines, outsourcing them to third parties. The bank has not yet said which two sectors are being outsourced.
Gulas also told the Albuquerque Daily Journal the bank expects to save money by “fully exiting from temporary consent orders it reached with federal regulators a few years ago to resolve problems in its loan portfolio” following the Great Recession.
“We reached settlements with the Securities and Exchange Commission and have had attorneys fees and other costs involved with all of that,” Gulas said. “We’re nearly out of that, and we’ll get additional savings by putting it behind us…Our goal is to become more efficient with a sustainable model going forward.”
This is not the first time Los Alamos National Bank has announced layoffs. Earlier this year, the bank reduced its senior management team by 25%. With the newly announced layoffs, the bank’s headcount has been reduced from over 250 to around 225.
Those employees who find themselves out of work will receive a severance package and have access to placement assistance services.
Los Alamos National Bank was established in June 1963. It was acquired by Trinity Capital Corporation (OTCBB:TRIN) in 1977 and serves as the holding company for the bank.
“LANB CEO Issues Letter To Los Alamos Community,” Los Alamos Daily Post, October 13, 2017.
“Los Alamos National Bank announces layoffs,” Albuquerque Daily Journal, October 13, 2017.
“About LANB,” Los Alamos National Bank, last accessed October 16, 2017.