650 Jobs Shed by Second Largest Bank

Bank Cuts 650 Jobs

Summary: On Wednesday, Synovus, Georgia’s second-largest banking company said that it will cut roughly 650 jobs in a span of two years. This cut represents 9% of its work force. From its 1,000 metro Atlanta employees, about 120 will be trimmed. Most of these positions consist of back-office functions.

Cutting 650 jobs came when the financial sector is reeling from the year-long crisis seasoned with high-profile failures from Bear Stearns’ collapse to the federal takeover of Freddie Mac and Fannie Mae (two mortgage giants) this week.

According to Synovus chief executive and chairman, Richard Anthony, “The bottom hasn’t been reached yet. So far, conditions are not getting better. Certainly, I can still see it going well until next year.”

Synovus assets are over $34 billion. They also own a series of teller machines, investment services, and other banks. It’s known for buying the smaller community banks while allowing them to operate independently and maintain their names.

In Georgia, among the 20 companies owned by Synovus include Monroe’s Bank of Coweta, Douglasville’s Citizens & Merchant’s Bank, and Atlanta’s Bank of North Georgia. For the most part, however, hiring at Synovus has been on hold already since April.

The company also slashed 65% of its dividend payment. They said that this change would save them about $50 million in a year as well as add $25 million more in their annual revenue.

The revenue of Synovus was $549.7 million in the recent fiscal quarter. During this period, earnings were 9 cents per share. It’s a far cry compared to the $660.8 million revenue and earnings of 32 cents per share last year during the same quarter.

650 Jobs Shed by Second Largest Bank

Bank Cuts 650 Jobs

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