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United States : FEDERAL RESERVE BANK OF BOSTON to cut 160 jobs

May 8, 2014

The Federal Reserve Bank of Boston will cut almost 15% of its workforce in the next three to four years the biggest layoff at the institution in over 10 years.

Bank officials informed 160 workers an entire division that their jobs would be eliminated because a key customer, the US Treasury Department, was cutting costs.

In an attempt to save taxpayers $117 million over the next 10 years, the Treasury is consolidating certain banking services that it spreads currently among 10 regional Federal Reserve banks, including Boston.

Thomas Lavelle, a spokesman for the Boston Fed said in the next few years, those services will be given by only four regional banks: St. Louis, Cleveland, Kansas City, and New York. Lavelle said, It s obviously a tough decision for us and the folks who are here. It s really about cost and efficiency.

Lavelle said, the last time the Boston Fed shrunk in such a substantial way was at the beginning of this century, when the central bank cut the amount of offices that handled paper checks from 54 to one nationwide.

The Boston Fed employs 1,075 people. While its work regulating banks and guiding policy on problems such as distressed communities, unemployment, and foreclosures garners the spotlight, it gives traditional bank services to the Treasury.

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Source: TendersInfo (India)

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