Banco Popular to cut up to 250 jobs

Banco Popular of Puerto Rico says it will cut up to 250 jobs in the coming months as it seeks to streamline operations.

Banco Popular officials told financial analysts in a conference call that most of the cuts will come from consolidating bank branches in Puerto Rico. The company says the cuts will save about $25 million.

CEO Richard Carrion said he expects the bank to have a strong future despite an island economy where the recession has been deeper and longer than on the U.S. mainland.
Banco Popular reported a net quarterly profit Wednesday of $27.5 million on revenues of $492 million.

Analysis

There really isn't anything easy to say about layoffs in Banco Popular, unless we're talking about cutting the senior management ranks. I've never understood why front-line employees get fired while senior management gets to stay. Why do those who have no participation in the strategy of an organization have to lose their jobs when senior management are the ones who make all of the key decisions?


Since their high of $28.38 on Jan 07, 2005 Banco Popular has dropped to $1.80 as of last Friday, a destruction of roughly $27 Billion in market capitalization. Tellers are not responsible for this kind of mismanagement. No, only Richard Carrion is responsible. Shit may roll down hill, but when it finally hits the fan, only those at the top of the hill are responsible.

Flickr Creative Commons Contributor: mugley

2 comments:

Anónimo

24 de octubre de 2011, 12:08
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dijo...

muy cierto. pero hasta que john paulson, el accionista mayor de BPPR, y otros accionistas grandes no le pidan la renuncia, Carrión no va a caer.

MC Don Dees

24 de octubre de 2011, 13:03
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dijo...

You too are also muy cierto. It's in the hand of the board and the shareholders. If they can be bought to keep everything the same, there will be no change. ¡Que triste!