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AMSOUTH BANCORPORATION TAKES STEPS TO STREAMLINE, IMPROVE PRODUCTIVITY

 BIRMINGHAM, Ala., Sept. 24 /PRNewswire/ -- As part of the reorganization plans announced by AmSouth Bancorporation (NYSE: ASO) in July, the company has taken further steps to streamline its structure and to improve its productivity beyond current levels, according to John W. Woods, AmSouth's chairman and chief executive officer.
 Key elements of the productivity improvement project include organizational and processing changes that improve efficiency and service quality and the more effective use of technology throughout the company.
 "The comprehensive efforts we are making to restructure our company rank among the most important tasks AmSouth has ever undertaken," Woods said. "When this multi-year project is completed, it will have led us from the way we do business today to the way we must do business to succeed in the future," he added.
 AmSouth's action follows more than a year of in-depth study by a team of senior bank officers working in conjunction with a consulting company that specializes in enhancing bank performance. The framework for implementing the project began in July, when AmSouth announced a major management realignment.
 "Our project differs significantly from some companies in that we are building from the company's current excellent performance level rather than being forced to make sweeping changes as a result of poor performance," Woods said.
 "We have taken the initiative to structure our company based on the long-term best interests of our shareholders, customers and employees. We believe that these plans will result in significant cost savings while improving the quality of the services we provide," he added.
 By being proactive, AmSouth retains control over the process of change, which is especially important when addressing the effects of the project on employees, according to Woods.
 "There will be a reduction in the number of certain jobs as a result of improved efficiencies and consolidations, so a significant amount of our planning dealt with minimizing the effects of these reductions on our employees," Woods said.
 "With the programs we have in place, we anticipate that as many as two-thirds of the estimated 750 positions within our existing company that may eliminated over the next year can be resolved through normal attrition and careful management of human resources," Woods said. When fully implemented, the annualized cost savings is estimated to exceed $20 million. AmSouth presently employs approximately 6,000 people system wide.
 In addition to building an inventory of job openings made available through normal attrition, AmSouth also will introduce a one-time enhanced retirement benefit that will provide additional openings for employees whose current jobs are affected by the restructuring. Other openings will become available in support areas as the completion of AmSouth's pending Florida and Georgia acquisitions occur in the weeks and months to come, according to Woods.
 During the third quarter of 1993, AmSouth will recognize a one-time cost of approximately $11 million associated with the enhanced retirement benefit. Due to a reduction in credit quality costs, including a substantial loan recovery, AmSouth anticipates no impact on the company's estimated third quarter earnings.
 AmSouth Bancorporation, headquartered in Birmingham, operates banking offices in four states and mortgage banking offices in eight southeastern states. The company's assets at June 30 totaled $11.1 billion.
 The corporation's lead bank, AmSouth Bank N.A., operates 151 banking offices throughout Alabama. Other bank affiliates include AmSouth Bank of Florida with 25 offices, AmSouth Bank of Tennessee with 20 offices, and AmSouth Bank of Georgia.
 AmSouth's bank-related affiliates include AmSouth Mortgage Company, Inc., with 30 locations, AmSouth Investment Services, Inc., and AmSouth Leasing Corporation.
 -0- 9/24/93
 /CONTACT: Analysts: Harvey Campbell, 205-326-5316, or, Media: Jim Underwood, 205-326-5184, both of AmSouth Bancorporation/
 (ASO)


CO: AmSouth Bancorporation ST: Alabama IN: FIN SU: PER

RA-BN -- AT011 -- 5560 09/24/93 16:47 EDT
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Publication:PR Newswire
Date:Sep 24, 1993
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