BOSTON (5/8/14)--The Federal Reserve Bank of Boston will cut 160 staff members who are part of its treasury services unit, reports the Boston Business Journal. The reduction will remove the entire department over the next several years.
According to the May 6 report, the move is part of consolidation efforts and will save taxpayers about $117 million over the next 10 years.
The Boston Globe reports that the reductions will take place over a three- to four-year period and represent the largest layoff in more than a decade. In the early 2000s, the bank cut the number of offices that handled paper checks down to one from 54.
Currently the services offered by the Federal Reserve banks are spread across 10 regional banks. After the restructuring, those services will be provided by four regional banks in Kansas City, St. Louis, Cleveland and New York.
Services such as cash management, invoice processing and stored value debit cards used on military bases will be phased out in Boston, reports the Globe. A study completed by the Treasury searching for ways to save money resulted in the decision to reduce the workforce.
Approximately 1,100 people work at the Boston location. Employees were told of the cuts May 2.