Thursday, Frontier Financial Corp. (FTBK), the holding company for Frontier Bank, said that it has carried out a workforce reduction of about 6% of the bank's 760 member workforce, effective Thursday. The company expects that the reduction will result in a $0.36 million pre-tax charge in the second quarter of 2009 but will provide an annual pre-tax cost savings of about $2.5 million.
According to Frontier Financial, the reductions occurred at all levels and in the company. The departing employees received severance pay based on their years of service and may also participate in a two-day career planning and jobs skills seminar.
Commenting on the reduction, Chairman and CEO Patrick Fahey said that the action was taken as a result of an ongoing review of bank operations to identify ways to operate more efficiently and continue to adjust the Bank's structure to reflect current economic conditions.
Frontier Bank also said that it has arranged for the departing employees to have the option of continuing to be under health coverage for 24 months instead of the 18 months usually offered.
FTBK is currently trading at $1.39, up $0.02 or 1.42%, on the Nasdaq.
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