Connecticut Attorney General William Tong has written a letter to the CEOs of M&T Bank and People’s United Bank requesting information about the layoffs expected from the banks’ upcoming merger.
M&T Bank last month notified Connecticut labor officials that it would eliminate 747 jobs in the state, including 661 at People’s United’s Bridgeport headquarters. The news led Bridgeport Mayor Joseph Ganim to announce he would withdraw the city’s accounts from People’s United. Other elected officials have also voiced concerns about the impact of the job losses.
The attorney general’s office said in a statement yesterday that the notice of job losses contradicted assurances that the banks had made to Tong, community leaders and bank employees about the merger.
“In the wake of your announcement, several local, state, and federal elected officials along with various community members have expressed understandable alarm and consternation over the staggering job losses and overall adverse economic impacts to the City of Bridgeport and the State of Connecticut that may result from the proposed merger,” Tong said in the letter to M&T Bank’s CEO René Jones and People’s United’s CEO Jack Barnes. “I join those voices and seek clarification and further detail from you regarding your efforts to mitigate any job losses and other potential adverse economic impacts to Connecticut.”
M&T Bank said in a statement last week that it currently has 1,500 job openings, with People’s United employees receiving first priority when applying for those positions. In a statement last week to The Commercial Record, M&T said that the bank would make efforts to allow employees who get new positions at M&T to work from their current location.
“This is not something we take lightly, and we will do everything we can to support our employees, both affected and unaffected, throughout this transition,” M&T said. “We anticipate this being a one-time shift as we work to combine the companies.”
Most of the staff reductions would take place in 2022, M&T said. The deal to acquire People’s United is expected to close in the fourth quarter.
People’s United has branches in New York and every New England state except Rhode Island. M&T said it would retain nearly 80 percent of People’s United employees across its footprint, including branch and customer service employees. The Bridgeport office will become M&T Bank’s New England regional headquarters.
Tong’s letter requested information regarding job retention, efforts to mitigate adverse economic impacts and M&T’s corporate responsibility obligations, including Community Reinvestment Act obligations.
“The impression you created was that job losses would be minimal and that the merged bank would continue to partner with local communities, the City of Bridgeport, and the State of Connecticut and would otherwise fulfill its obligation to be a responsible corporate citizen,” Tong said in the letter, which was emailed to the leaders on Aug. 2. “I would like to provide you with the opportunity to explain your prior assurances and put your commitments in writing to the Attorney General’s Office that the merged bank will retain a large majority of People’s Bank employees.”
