BAXTER -- BISYS announced employee layoffs today that could affect as many as 50 people.
Employees were receiving the news today. The job eliminations, about 10 percent of the lakes area's full-time regular employees, will take place on a staggered basis during the next four months.
"We don't think it will be that high due to some of the open positions we have," Pam O'Rourke, BISYS senior vice president based in Baxter, said today.
BISYS, a public retirement plan services company based in New York with offices in Baxter and Brainerd, has about 450 employees in the lakes area.
O'Rourke said in the past 18 months since BISYS purchased Universal Pensions Inc. work has progressed to get lakes area offices and BISYS' Pennsylvania offices on one record-keeping platform. O'Rourke said the move to one core record-keeping system, part of an effort to operate more efficiently, led to the consolidation of some operations, with some coming to the Brainerd area and others moving to Dresher, Penn.
O'Rourke said the short-term effect is loss of jobs in both locations. Just how many jobs will be affected in Dresher, Penn., was unknown. Job loss may be mitigated by job openings in other areas in BISYS and in Dresher, Penn.
O'Rourke said the company also expects to add clients and subsequently hire for additional jobs in the next six months. The news comes at a stressful time for people with the holidays approaching.
O'Rourke said outplacement services and a salary continuation program are in place, but she did not reveal financial details.
Four specific departments are affected -- distribution processing, trading desk, plan accounting and compliance. Actual termination dates are staggered.
The company previously had layoffs associated with the BISYS purchase of Universal Pensions Inc., which was announced in June 2001. Those job cuts came as the two companies merged redundant operations.
But O'Rourke said BISYS is "extremely committed to the Brainerd community. This was a very strong acquisition for BISYS group and they have invested tremendous resources in bringing in Brainerd and training of employees. ... I would say Brainerd is strong and healthy."
The product division, exclusive to the lakes area, had record sales this year. O'Rourke said some of the decisions have moved processes fully to Brainerd, including a new 401(k) arrangement for small business.
O'Rourke said during the previous layoffs the company was looking at redundancies with the purchase of UPI and at changes in the senior management structure. She said there are no changes in senior management in the lakes area offices and the job eliminations are from department consolidation, which also reflects the company's investment in technology.
BISYS will employ more than 400 people in Brainerd after the job eliminations, O'Rourke said.
"I think it's important for the Brainerd employees to know we have a very strong group and exciting new products and a pipeline of clients and expect to be growing despite having to go through this now."
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