Santander Bank will lay off 53 workers at its Conshohocken branch after the financial institution announced it would no longer create residential mortgages and home equity lines of credit (HELOCs).
According to a WARN notice filed with the Pennsylvania Department of Labor and Industry, the layoffs are permanent and will take effect April 8.
On February 2, Santander Bank revealed that it would cease its mortgage and HELOC services, with the deadline for submitting applications being February 11.
In an explanatory published on its websiteSantander Bank said stopping the programs “allows us to focus our efforts and resources on digital products, services and capabilities that allow us to better meet the changing needs of consumers.”
“We will be pausing residential mortgages and real estate lending as we continue to focus on investing in products that scale and leverage our core strengths,” Santander Bank said in a statement on Friday.
“This decision will allow us to unlock capital to fuel our growth. We remain committed to our customers, the small businesses and communities we serve and ensure that our current customers and those in our pipeline are not impacted.
Santander Bank also said it would continue to service existing mortgages and HELOCs without interruption or modification, in addition to processing all applications submitted before the deadline.
The changes do not impact Santander Bank’s commercial mortgage lending business.
More layoffs to come?
Regarding the shutdown of services, Santander Bank said it was looking to “simplify” its business after home loans and equity lending “did not reach full scale”.
The company – which was originally founded as Sovereign Bank in Wyomissing and now headquartered in Boston – intends to reallocate its resources to areas such as auto loans and segments of the investment and commercial banking, he said.
However, with these changes to its business model, Santander Bank recognizes that there will be more layoffs.
An estimated 4.5% of its workforce will be affected, the bank revealed – although for some it could mean a transition to another role in the business.
Santander Bank also supports its employees through severance packages and career transition services, he said.
According to its website, Santander Bank’s entire North American workforce currently numbers around 9,000.
Santander Bank also highlighted its philanthropic efforts in its local communities, noting that these commitments will not change.