Stung by criticism of job cuts, M&T promises to keep People’s United employees “substantially”

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M&T Bank Corp. and People’s United Financial Inc. released an update on their ongoing merger, promising that it will retain nearly 80% of the People’s United team members, including almost all customer-facing employees.

Image courtesy of M&T Bank

The announcement follows reports yesterday that 747 Peoples United workers in Connecticut are losing their jobs as a result of the merger.

This news has been greeted with concern by leading lawmakers including U.S. Senator Richard Blumenthal (D-Connecticut), who issued a statement saying: I demand additional information from banks and consider seeking federal regulatory action and state. Bank mergers have already wreaked havoc on jobs and competition in Connecticut and across the country.

M&T reiterated that People’s United headquarters in Bridgeport will become the New England regional headquarters for M&T, further strengthening the combined company’s commitment to Connecticut and the region. Bridgeport will be a hub for many types of banking positions and activities, positioning the community for significant economic and employment growth over time.

M&T said it would also retain virtually all employees at People’s United branches, including those who work in Stop & Shop branches.

“The combination of M&T and People’s United is a unique opportunity to create a new organization that will strengthen our ability to serve our communities and our customers combined, and to deliver solutions that make a difference in people’s lives,” said Ren. Jones, president and CEO of M&T, who will lead the combined company in the same capacity.

“Since the announcement of the merger agreement, we have taken advantage of hearing the perspectives of the many leaders and voters in our communities to ensure that our plans are informed by their perspectives,” Jones said. We look forward to developing lasting and meaningful relationships in our new communities, like the ones we have through our footprint today, to provide meaningful long-term value. “

M&T, which is based in Buffalo, said there were more than 1,500 open positions across the combined footprint, and that People’s United employees would receive priority attention and support for hybrid and remote work. All affected employees will receive severance benefits, including career transition assistance.

Jeffrey Tengel, president of People’s United, who will be executive vice president of the merged company and the Bridgeport-based top executive, said: “In any merger there are always difficult steps to take when you finalize. manpower requirements for the combined organization. M&T has taken a thoughtful and empathetic view of each of these decisions, evaluating talent at the individual level to reduce the impact.

We will continue to do everything possible to support employees, both affected and unaffected, throughout this transition, Tengel said. We are confident that we will be able to position the combined company so that we can deliver the services our customers need, where they need them, while retaining a significant number of jobs and growth opportunities.

The majority of job cuts will take place in 2022.

The merger, which was unanimously approved by each company’s boards of directors, was announced in February as an all-equity deal valued at more than $ 7 billion. It is subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals.

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