Cleveland-based KeyCorp,the parent of KeyBank NA,has committed to minimize layoffsand increase jobs in New York within the next five years once it completes the proposedacquisition of Buffalo,N.Y.-based First Niagara FinancialGroup Inc.
After months of negotiations, Sen. Charles Schumer, D-N.Y., and Rep. Brian Higgins, D-N.Y.,finalized an agreement over the July 9-10 weekend with KeyCorp Chairman and CEOBeth Mooney to ensure that the company's deal with First Niagara will not adverselyimpact western New York.
KeyCorp agreed to do its best to retain branch employees by offeringthose currently working at a branch set for closure comparable jobs at another branchwithin the same area.
Also, in selling branches, KeyCorp will choose a buyer that isexpected to maintain the presence of the branch and retain the branch employees.
KeyCorp, conceding that there might be cases where no comparableposition becomes available, committed that no more than 250 employees will be laidoff as a result of the transition.
Moreover, KeyCorp committed that by 2021, it will have at least6,117 employees in Upstate New York, the same number of employees the two separateinstitutions currently have. KeyCorp agreed that at least 500 to 600 jobs will beadded in New York over the next three years, and an additional 300 to 400 jobs willbe added over the following two years.
KeyCorp intends to invest and grow its commercial insurance,auto lending, and mortgage banking businesses, which will be headquartered in WesternNew York. KeyCorp will also establish a northeast headquarters in Buffalo, whereFirst Niagara is currently headquartered.