NEW YORK (Reuters) - Midwest U.S. bank KeyCorp <KEY.N> plans to cut 415 jobs in Ohio next year, or more than double the number announced previously.
By Tim McLaughlin
NEW YORK (Reuters) - Midwest U.S. bank KeyCorp <KEY.N> plans to cut 415 jobs in Ohio next year, or more than double the number announced previously.
Cleveland-based KeyCorp said the anticipated cuts would mostly affect call center and operations workers in Ohio. In November, KeyCorp said it would cut 185 jobs at a Dayton, Ohio, call center that is being closed next year. Those operations will be consolidated into other KeyCorp call centers.
But earlier this month, KeyCorp told Ohio labor officials it would cut 230 more jobs at locations in the Cleveland area.
!ADVERTISEMENT!The total cuts could represent about 2.2 percent of KeyCorp's 18,567 employees reported at the end of September.
But actual reductions could be lower because of attrition and internal reassignments, KeyCorp said. The bank said it provides separation pay and other benefits, based on job grade and length of service, to those who don't find positions within the company.
KeyCorp's stock is down 40 percent this year. Analysts and investors recently have been concerned about the bank's construction portfolio in Florida and southern California, where nonperforming assets surged in the third quarter.
Soured construction loans in those two states accounted for most of KeyCorp's rising nonperforming assets, which climbed 73 percent to $570 million in the third quarter.
KeyCorp spokesman William Murschel said the bank's financial position is strong. The bank last year exited the subprime mortgage business, which has dragged down the operating performance of a number of U.S. lenders.
KeyCorp shares were down 23 cents to $22.98 in afternoon trade on the New York Stock Exchange.
(Editing by Phil Berlowitz)
