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KeyBank agrees to limit jobs cuts after merger

Will add more than 800 jobs over next five years
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Posted at 7:46 AM, Jul 11, 2016
and last updated 2016-07-12 09:10:25-04

KeyBank will not lay off any branch employees, limit overall layoffs to 250, and add more than 800 jobs over the next five years, according to a new agreement between the bank and two New York Lawmakers.

U.S. Senator Chuck Shumer and U.S. Representative Brian Higgins announced the deal Monday morning.

The deal was made amid concerns of potential job losses if KeyBank's acquisition of First Niagara Bank is finalized. A decision is expected later this year.

Some of the key details of the plan include:

  • KeyBank has committed to not laying off any branch employees, and will offer any branch employee that currently works at a branch scheduled to be closed a full-time and comparable job at another KeyBank branch within the same area. 
  • KeyBank will add at least 500-600 new jobs in NY over the next 3 years (2016-2018), and will likely add an additional 300-400 jobs over the following 2 years (2019-2020).
  • Three new businesses will be headquartered in Western NY: Key’s Commercial Insurance, Auto Lending, and Mortgage Banking businesses.
  • KeyBank has agreed that the number of employees that may need to be laid-off as a result of the transition will not exceed 250.
  • KeyBank will establish a Northeast Headquarters in Buffalo.

“After months of discussions and tough negotiations with KeyBank, I am pleased that we were able to reach an agreement that ensures thousands of KeyBank and First Niagara jobs will remain in Western New York for years to come," Senator Schumer said in a press release. "In the months and years to come, I look forward to making sure the terms of this plan, which is designed to save the maximum number of existing jobs, and create new ones, too, is lived up to."

“The initial news of this acquisition created great angst in Western New York where the two banks hold a large footprint and employ thousands of workers,” said Congressman Brian Higgins. “We are also pleased that KeyBank has agreed to embrace standards included in our Vacant Home Act legislation, which fights neighborhood blight associated with zombie properties."

As part of the acquisition of First Niagara, KeyCorp says it will consolidate 22 Western New York branches. Those consolidations will take place in waves with the earliest starting in October of this year.

The consolidations of the bank branches will let customers to go a new branch no more than three miles away.

LEGACY BANK          CONSOLIDATING BRANCH      OWNERSHIP      DISTANCE        RECEIVING BRANCH

 CONSOLIDATING IN OCTOBER 2016

 First Niagara            Northpointe 665 North French Amherst, NY 14228   1.2 miles          East Robinson 3050 Niagara Falls Blvd. Amherst,

 First Niagara            Hertel 1726 Hertel Ave. Buffalo, NY 14216               0.9 miles          Main & Jewett 2421 Main St. Buffalo, NY 14214

 First Niagara            Lancaster 5075 Broadway Depew, NY 14043           0.3 miles          Lancaster 5207 Broadway St. Lancaster, NY 14086

 First Niagara            Dunkirk 401 Central Ave. Dunkirk, NY 14048           0.1 miles          Dunkirk 51 East Fourth St. Dunkirk, NY 14048

 First Niagara            East Aurora 649 Main St. E. Aurora, NY 14052       1.0 miles          East Aurora 55 Douglas Lane East Aurora, NY

 First Niagara            Falconer 1 E. Main St. Falconer, NY 14733             2.6 miles         Jamestown 417 Spring St. Jamestown, NY 14701

 First Niagara            Wanakah 4939 Lake Shore Rd. Hamburg, NY         1.9 miles          Brierwood 5334 Southwestern Blvd. Hamburg, NY

 First Niagara            Lakewood 707 Fairmount Ave. Jamestown, NY        1.2 miles         Lakewood 369 East Fairmount Ave. Lakewood, NY

 First Niagara            Kenmore Village 2853 Delaware Ave. Kenmore, NY  0.02 miles       Kenmore 2858 Delaware Ave. Kenmore, NY 14217

 First Niagara            Five Corners 3049 Orchard Park Rd. Orchard Park   0.1 miles         Union Road at Michael 3030 Union Rd. Orchard Park

 First Niagara            Orchard Park 6520 Webster Rd. Orchard Park, NY  1.0 miles         Orchard Park 4239 North Buffalo Rd. Orchard Park,

 First Niagara            Seneca Square 325 Orchard Park Rd. West Seneca 0.1 miles        Seneca Square 320 Orchard Park Rd. West Seneca,

 First Niagara            West Seneca 1251 Union Rd. West Seneca, NY      0.2 miles        West Seneca 4050 Seneca St. West Seneca, NY

 First Niagara            Harris Hill 8503 Main St. Williamsville, NY 14221      0.9 miles        Clarence 8899 Main St. Williamsville, NY 14221

 First Niagara            Hopkins-Klein 827 Hopkins Rd. Williamsville, NY      0.1 miles        Hopkins & Klein 804 Hopkins Rd. Amherst, NY   First Niagara            Williamsville 5190 Sheridan Dr. Williamsville, NY       0.1 miles        Evans-Sheridan 5173 Sheridan Dr. Amherst, NY

 

CONSOLIDATING IN NOVEMBER 2016

 Key                        Garden Village 2345 Union Rd. West Seneca, NY     2.4 miles        Cheektowaga 1455 French Rd. Depew, NY 14043

 

CONSOLIDATING FUTURE DATE TBD

 Key                        French Borden 1219 French Rd. Cheektowaga, NY   0.5 miles        Cheektowaga 1455 French Rd. Depew, NY 14043

 Key                        Jamestown – Drive-in 501 West Fifth St. Jamestown, 0.44 miles     Jamestown 417 Spring St. Jamestown, NY 14701

 Key                        South Lockport 5740 S. Transit Rd. Lockport, NY      0.06 miles     Town of Lockport 5737 S. Transit Rd. Lockport, NY Key                        LaSalle 8301 Niagara Falls Blvd. Niagara Falls, NY    0.57 miles     Niagara Falls 7350 Niagara Falls Blvd. Niagara Falls, Key                        Del-Ton Plaza 4248 Delaware Ave. Tonawanda, NY    1.74 miles     North Tonawanda 100 River Rd. North Tonawanda, NY