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Benefits February 4, 2009
Huntington Bank Cuts 401(k) Match
February 4, 2009 (PLANSPONSOR.com) - Huntington
Bancshares has announced actions it will take to get on more
sound financial footing, including cutting company match
contributions to its 401(k) plan.
Reported by Rebecca Moore
Dropping the match will save the Columbus, Ohio-based bank $11 million, the Columbus Dispatch reports. The bank also announced it will lay off 500 employees, freeze salaries at 2008 levels, and eliminate bonuses earned in 2008.
The end of bonuses and other perks, including recognition trips for top sales representatives, will save the bank $30 million to $40 million, according to the Dispatch.
The need to slash operating costs stems from Huntington’s poor fourth-quarter performance, the continuing recession, and concerns about the bank’s exposure to subprime mortgages.
Huntington reported a $417 million loss for the fourth quarter, in great part because of a $454 million writeoff for problem loans it acquired through its 2007 purchase of Sky Bank, the news report said.