About 250 jobs will be cut in September when BancWest Corp., takes ownership of Fargo-based Community First Bankshares, a BancWest spokesman said Thursday.
"There will be layoffs," said John Stafford, vice president of corporate communications for Bank of the West, a BancWest Corp. subsidiary in Los Angeles. "We will eliminate about 250 total, net positions."
Community First President and CEO Mark Anderson said in March, when the $1.2 billion sale was announced, that the bank had 664 employees in Fargo and 2,162 system wide.
Some "back office positions" may be cut in Fargo as the firms eliminate duplicated services, Anderson said then. He could not be reached for comment Thursday.
Stafford said Thursday that Bank of the West plans to have about 300 employees working in Fargo, and another 75 to 100 in local branch locations, when the final transaction is signed in mid-September.
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He said a number of jobs being eliminated in California will be coming to the Fargo bank, but did not know how many positions that would involve.
"We hope to pull those numbers together," he said.
"We expect to hire Community First people to fill them. We're talking work that is now being done in California and moving it to Fargo. The impact will be less than it would have otherwise been."
They represent positions in the company's telephone online contact center, auto loan production department, small business loan underwriting and commercial loan documentation group, Stafford said.
There is currently a hiring freeze in place at Community First in Fargo.
As for the local cuts, Stafford said he expects positions in the information technology department "to be greatly reduced."
There will be some administrative cuts where duplication of services exist, he said, in areas such as human resources.
All people whose jobs are eliminated will receive a "generous" severance package - between 13 to 20 weeks in salary depending on their tenure with the bank, Stafford said.
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BancWest also will offer outplacement services to displaced workers, he said.
"We will maintain the headquarters for our Upper Midwestern branches in Fargo," he said, along with subsidiary Community First Insurance Inc.
Tom Anderson, Community First's chief investment officer, will head up the insurance subsidiary, Stafford said.
Some management positions will be moving to California from Community First in Fargo, he said.
The closing of the financial transaction is still pending regulatory approval.
"We would certainly like to characterize our commitment to Fargo as a strong one," said Stafford. "We look forward to growth there."
Attempts to reach several Community First officials Thursday were unsuccessful.
Readers can reach Forum Business Editor Craig McEwen at (701) 241-5502
