PORT ANGELES — First Federal made a round of job cuts last week that are likely the institution’s first in its nearly 90-year history on the North Olympic Peninsula.
The locally owned and managed bank, born in 1923, laid off about 10 employees in its Port Angeles and Sequim branches on Thursday, First Federal board chairman Jimmy Ray confirmed Saturday.
Ray didn’t recall the exact number, but said he “believed” 10 was correct.
Other First Federal representatives either could not be reached or declined to comment.
Port Angeles-based First Federal operates eight branches. They are in Port Angeles, Forks, Sequim and Port Townsend.
The chairman said that the cuts are the first he has seen in his 25 years with the company and probably the bank’s first.
Ray, who didn’t rule out more layoffs in the future, said that the cuts are part of an ongoing effort to reduce First Federal’s cost of doing business.
“We are in the process of looking at all of the processes we go through to approve loans and et cetera, to try to make ourselves more efficient,” he said.
“It’s a lengthy process. It will probably take six months or more while we find our best practices.”
Ray said the bank began looking at how to reduce costs as part of its new “First Federal Forward” strategy that went into effect Jan. 1.
He said employees “in some cases” were offered a severance package when their jobs were cut Thursday.
Ray said there will “probably be” more layoffs, but added that the bank is looking at more than just personnel. How technology can be better used is also a big part of it, he said.
“Well, right now, the first example is we found some positions that were outmoded or not needed anymore,” Ray said.
“We look at every process in the bank from stem to stern,” he added.
The bank unveiled First Federal Forward in a prepared statement Tuesday.
As part of its new strategy, each department within the bank is working to develop a plan to ensure that everything that happens is done in the most efficient and effective way possible, CEO Levon Mathews told the Peninsula Daily News in an interview Wednesday.
In some cases, Mathews said then, the changes might mean some layoffs. In others, changes could mean more hirings.
“It might mean five layoffs in one area but 25 new people in another,” he said.
Elaine Gentilo, human resources director, and Mathews both said Wednesday that the plan is still under development, so there is no way to know how it might impact the staffing.
Gentilo said end result improvements were the only goals of the reorganizing and reevaluation of how technology is used.
“Our goal all along is to enhance the customer experience, to maintain or improve the excellent customer service we are known for,” she said.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
Reporter Paige Dickerson can be reached at 360-417-3535 or at paige.dickerson@peninsuladailynews.com.