Crocker National Corp., in a move to cut costs and focus resources on profitable operations, said Wednesday that it will lay off 750 employees at its principal subsidiary, Crocker National Bank.
The layoffs include workers from clerical staff to senior officers and are concentrated in administrative ranks and international lending, Crocker spokesman David Sanson said. The employees represent about 6% of Crocker's total work force of 13,200.
The layoffs, which will be spread over the next two months, were announced to Crocker staff Tuesday morning after rumors circulated of far greater employee reductions.
Result of 'Functional Review'
"All of this is the result of what we've called a 'functional review' that's been going on for some time," Sanson said. "It's designed to look at our organization, services and delivery system with an eye to making Crocker both leaner and more flexible. Some parts of the business will grow, other parts will shrink and others will be eliminated."
Crocker has suffered from large losses in real estate, agriculture and foreign loans. The bank lost $324 million in 1984 but posted a modest $9-million profit in this year's first quarter.
In 1984, the bank closed 42 branches, laid off 150 employees and eliminated another 950 jobs through attrition.
Crocker's severance plan for the affected workers calls for payments of between two and 26 weeks' pay, depending on age and seniority. The bank also said it plans to help the furloughed workers find new jobs. London-based Midland Bank holds a 57% stake in Crocker and is seeking shareholder and regulatory approval to increase its ownership to 100%. Crocker National is the 16th-largest bank holding company in the United States.