DANVERS — The Connecticut bank that is acquiring Danversbank plans to lay off 91 employees, nearly one-quarter of the local bank's workforce, once the merger is complete.
The layoffs will take place from Aug. 1 to Oct. 28 and will affect employees at five locations in Danvers and one in Beverly, according to a letter Danversbank filed with the state last week.
People's United Bank, which is acquiring Danversbank for $493 million, plans to lay off loan associates, operations analysts, security desk attendants, parking lot attendants, couriers, clerks, customer representatives, and the in-house cleaner at Danversbank headquarters in Danvers Square, among other positions.
The layoffs will come at the same time that Danversbank executives and directors are scheduled to receive more than $19 million in stock options that will be accelerated due to the merger.
Danversbank CEO Kevin Bottomley said the number of layoffs is not out of line with those that have occurred in other bank mergers.
"It's a large transaction," Bottomley said. "We were a pretty good-sized bank, so in percentage terms I don't think it's necessarily different from transactions of a similar size. We had a large back-office operation, so therefore particularly when the acquirer is not within the market, or even if it is within the market, you just simply have duplicative positions in non-customer-facing positions."
Bottomley is in line to receive more than $17 million in stock options and other payments in the merger. He will remain as a consultant for People's United for $400,000 over two years.
The planned layoffs are detailed in a letter to the Massachusetts Division of Career Services. Employers are required to notify the state of any large layoffs so that its "rapid response teams" will be prepared to assist the laid-off workers.
"I've called over to the bank to offer help," said Mary Sarris, executive director of the North Shore Workforce Investment Board, which provides worker assistance. "I'm sure it's a very stressful time."
The 91 layoffs do not include employees who may lose their jobs before Aug. 1, according to the Danversbank letter. The affected workers are not represented by a union and do not have "bumping rights," the letter said.
Bottomley said the 91 workers were notified of the planned layoffs last week. He said the employees will receive severance and will be eligible for subsidized health insurance through the COBRA program. People's United will assist employees in finding new jobs, he said.
"We don't sort of just cast people adrift," Bottomley said.
Bottomley said some employees who are going to lose their jobs have already started looking for work and had "good results."
"Those who have chosen to look have found that the economy is certainly better than it has been in a number of years," he said.
Bottomley said People's United is not planning to close any existing Danversbank branches.
A spokesman for People's United described the layoffs as a "consolidation of positions." He said the bank will assist employees with career services.
People's United announced in January that it plans to buy Danversbank, and Danversbank stockholders voted to approve the deal earlier this month. The state Division of Banks is scheduled to hold a public hearing on the merger today.
Staff writer Paul Leighton can be reached at 978-338-2675 or by email at email@example.com.