Finance and Economic

Employees of U.S. Bank will endure pay cuts and unpaid days off as the Minneapolis-based bank tries to cut expenses by 5 percent.

The bank is using such cuts as a way to avoid major layoffs, a spokesman said. "We’re trying to do this without any impact on our business or significant staff reductions," said spokesman Steve Dale.

Executives in each bank division have leeway to decide how to achieve the cuts. Some are imposing 5 percent salary cuts, while others are using unpaid furloughs. Departments are trying to cut other expenses before reducing employees’ income, Dale said.

U.S. Bank has so far fared better than other large banks during the financial crisis saving account payday loan. Still, its profits fell 65 percent in the final quarter of last year as the bank wrote down the value of its securities and set aside money to cover bad loans.
U.S. Bank has the largest market share among banks in St. Louis, with 18 percent of the region’s deposits. It has 116 branches around St. Louis and 3,400 local employees.

The bank had no information on how many local workers will take furloughs or pay cuts.

jgallagher@post-dispatch.com | 314-340-8390

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