Frost Bank, a subsidiary of Cullen/Frost will be shuttering about 68 positions within their workforce across all departments and locations due to conditions related to the COVID-19 pandemic and low interest rates. The San Antonio based financial institution said that these layoffs are the first time in two-decades. The last time the company did any layoffs was back in 2002, according to Frost spokesperson Bill Day.
In efforts to cut costs, the company’s management and board of directors began taking a reduction in the salary beginning January. The company is also cutting general expenses throughout the company as well. CEO and chairman Phil Green said that they expect revenues to be under pressure from low federal interest rates for a couple of years. Interest rates are what make banks grow financially and economically healthy.
“We’ve been looking throughout the company where we can cut costs and manage expenses,” Day said, adding that the company is doing so due to economic conditions related to the pandemic and low interest rates. “Cutting positions is the last option.”
“What we’re talking about doing is taking a deep dive,” Green said in October. “We want to be smart about our business, we want to do the right thing, do things that are lasting, long-term and with the view on all this to keep and improve the customer experience.”