(CMR) Butterfield is expected to cut over 20 jobs in the Cayman Islands as the institution announced it is looking to cut staff by 9 percent worldwide.
Butterfield currently employs 413 people in Bermuda, 244 in the Cayman Islands, and 1,341 globally, according to its 2022 annual report. About 37 jobs are expected to be lost in Bermuda and 22 in the Cayman Islands.
“I am writing to share with you our decision to reduce Butterfield’s workforce by 9 percent in a group-wide restructuring. In the majority of cases, the redundancies are effective immediately,” CEO Michael Collins said in a message to employees dated September 25.
He said that in Bermuda, a 14-day consultation period was being initiated before the decisions were finalized.
“You may be wondering why this is happening when our financial performance has been solid. While we have done a good job at containing costs, we are not immune to the inflationary pressures that all companies are facing today. As a management team, we have thoroughly reviewed our businesses, forecasts and market conditions,” Collins continued.
“As with most banks, Butterfield’s earnings have been favorably impacted by rising interest rates, but our current outlook suggests that we are at the top of the US interest-rate cycle. As interest rates flatten or start to fall, we must reduce expenses to partially offset declining net interest income while maintaining a low-risk balance sheet throughout the rate cycle,” he explained.
Total assets of the Bank were $13.5 billion at June 30, 2023, a decrease of $0.8 billion from December 31, 2022. The Bank maintained a highly liquid position at June 30, 2023, with $8.1 billion of cash, bank deposits, reverse repurchase agreements, and liquid investments representing 59.7% of total assets, compared with 61.3% at December 31, 2022.
Total assets under administration for the trust and custody businesses were $118.5 billion and $29.0 billion, respectively, at June 30, 2023, while assets under management were $5.4 billion at June 30, 2023. This compares with $106.2 billion, $32.2 billion, and $5.0 billion, respectively, at December 31, 2022.
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