Great American Says Up to 636 Will Lose Jobs : S&Ls;: Some employees come away from a hastily called meeting complaining that they are as in the dark as ever.
In a special employees-only meeting Monday night, Great American Bank workers were served notice that as many as 636 of them will lose their jobs in coming months as a result of the troubled S&L;’s sale of its California branches to Wells Fargo.
The hastily called meeting was designed to clear up employee confusion about the branch sale and new chief executive Robert Kemper’s statement last week that about 700 jobs were under review for possible termination.
For the record:
12:00 a.m. July 25, 1990 For the Record
Los Angeles Times Wednesday July 25, 1990 San Diego County Edition Business Part D Page 2 Column 4 Financial Desk 3 inches; 75 words Type of Material: Correction
Great American layoffs--A “Highlights” summary on Page D1 of the Business section Tuesday erroneously reported that Great American Bank employees were told Monday that 636 of them will be laid off. As reported in the accompanying article on the same page, Great American Bank President Robert Kemper said Monday that up to 636 jobs could be cut. The S&L; stressed Tuesday that there is little likelihood all 636 jobs will be eliminated, but declined to offer a percentage of jobs being targeted for cuts or a timetable for the reductions.
However, several of the 500 employees attending the meeting at the San Diego Hilton complained afterward that they are still in the dark about their jobs and that they came away with no new information.
One worker who asked not to be named said the meeting was “a waste of time.” Several said Kemper was evasive when employees asked him who would be laid off and when.
In a brief interview after the meeting, which was closed to the press, Kemper said he told the assembled workers that no more than 636 jobs would be cut “over time.” He declined to be more specific.
“I met with my employees just to tell them what is going on,” Kemper said. “I don’t have all the answers yet. There will be layoffs. I don’t know how many.”
Great American announced last week that it was selling its California branch network to Wells Fargo for $492 million. Wells Fargo will inherit 1,600 employees who work at the California branches and those at the S&L;’s service center in National City. That will leave Great American with employees at its 81 Arizona and Washington branches, plus about 1,200 administrative workers.
At the time of the announcement, Kemper said layoffs of up to 700 of Great American’s headquarters staff could follow as a cost-cutting measure.
Since then, rumors have swept through the work force as employees waited and wondered about their jobs.
“You want to know what’s going on? Nothing’s going on,” said one employee who was visibly upset as he left the employee meeting. “They didn’t answer any of the questions they should have answered.”
One worker, leaning against a car, talking to a small group of co-workers, expressed disgust with the lack of information and said Kemper did not tell employees anything they didn’t already know.
“We were basically told to wait and see,” the worker said. “People who have been here 10 or 20 years are going to be out the door just like that.”
One employee, however, was more understanding of Kemper, a former Wells Fargo vice chairman who was hired earlier this month by Great American’s board of directors to replace retired chief executive and chairman Gordon Luce.
“For being here only 15 days, he can’t be expected to have all the answers,” said the employee.
