INVESTORS OK BANK DEAL : WELLS FARGO-FIRST INTERSTATE MERGER TO BRING WAVE OF STAFF LAYOFF NOTICES.Byline: Dawn Yoshitake Daily News Staff Writer Shareholders approved the merger of First Interstate Bancorp First Interstate Bancorp was a bank based in the United States that was taken over in 1996 by Wells Fargo. It was headquartered in Los Angeles. The name has continued to be used in the banking world by used after the merger by First Interstate Bank who had been using the and Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. & Co. on Thursday. And with the close of the deal Monday, the first wave of layoff notices will go out to employees. First Interstate employees will receive one of three letters when they arrive for work: their position is retained, eliminated or still under review, said Ken Preston, a spokesman for Los Angeles-based First Interstate. ``Next week, we're going to see a lot of people gone,'' Preston said. ``Some employees have already been told their jobs are being phased out like those in centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. departments.'' A majority of First Interstate employees in the economics, legal, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and finance departments have been informed their jobs will be eliminated, Preston said. One insider has estimated the cuts will reach 10,000 jobs. Wells Fargo declined to comment on layoffs Thursday, but bank officials have predicted in the past that they would be significantly less and would include both First Interstate and Wells employees. Employees who find their position in limbo will remain on Wells Fargo's payroll for at least 30 days to help with the transition. Those who are not hired will receive severance packages A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
Hundreds of First Interstate employees, however, may find themselves working for Home Savings of America. The S&L's parent company, Irwindale-based H.F. Ahmanson & Co., announced Thursday that it planned to acquire 61 branches of First Interstate's California network that Wells Fargo was required to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. to satisfy antitrust concerns. In Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County, Home Savings expects to acquire First Interstate branches in Woodland Hills, Palmdale and Quartz Hill. The deal, valued at $208 million, will result in hiring about 730 First Interstate employees, said Charles R. Rinehart, Ahmanson chairman and chief executive. He said Home Savings may consolidate up to 27 of the branches, which could result in fewer than 50 layoffs because First Interstate employees will be absorbed into the thrift as positions open up through attrition. The deal is expected to close during the third quarter and decisions about branch consolidations made within the next 60 days. First Interstate held a brief shareholders meeting tinged with nostalgia in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or , while Wells investors met in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden to approve the $13 billion banking deal - the most expensive in the nation. ``To our shareholders, we at First Interstate have done an excellent job in increasing shareholder value,'' said William Siart, outgoing chief executive and chairman. ``The shareholders owe our employees a debt of gratitude. . . . We have 28,000 very qualified, very dedicated, very hard working employees.'' A number of employees gathered at First Interstate's downtown headquarters for a farewell party. ``Overall it was a sad event. People came to see people they've worked with over the years,'' Preston said. First Interstate customers can continue to use their checks, credit cards and automated teller machine automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. cards until later this year or early 1997. First Interstate signs will begin disappearing within three to six months. |
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