The Federal Deposit Insurance Company (FDIC) announced Thursday that it is seeking to “reshape the agency’s workforce” by offering voluntary retirement and early separation to 20 percent of its employees. That could be as many as 1,200 employees.
Additionally, the FDIC said several field offices will be closed and consolidated with other offices.
The buyouts are not designed to reduce the FDIC budget or the overall size of the workforce, the FDIC said in a news release. Instead, it is seeking to rebalance the workforce by growing its examination and risk-related teams, while adding specialized information technology, computer science, data management and loan-review personnel.
“Today’s announcement is part of a deliberate strategy to further reduce layers of management, acquire new skillsets, and allow the agency to proactively address succession planning prior to any crisis or emergency situation,” FDIC Chairman Jelena McWilliams said. “This program will enhance our agility, preparedness, and technological transformation.”
The FDIC noted that the number of senior managers and executives at the FDIC has grown at more than twice the rate of the agency’s total workforce over the last 15 years, creating an imbalance in the workforce.
In a news release announcing the buyout offers, FDIC said 42 percent of its workforce is eligible for retirement within five years. Additionally, 60 percent of its executives and 58 percent of its managers are retirement eligible.
“Within the next few years, the FDIC will need to navigate a potential wave of retirements, reverse attrition trends among its core examination workforce, and hire staff with skills to match technology innovation,” an FDIC Inspector General report released in February said. “Effective management of these challenges limits the impact of leadership and skill gaps, and the loss of institutional experience and knowledge due to retirements. The FDIC should position itself to recruit, retain, and develop future talent.”
Under the program, employees who voluntarily separate or retire from the FDIC will generally receive six months of salary.
In an email, FDIC spokesperson Brian Sullivan confirmed that several agency field offices will be closed, with their operations being consolidated with other nearby offices. They include:
- The Tulsa, Oklahoma, field office will close when its lease expires on July 31. Banks assigned to the Tulsa field office will be reassigned to the Oklahoma City field office.
- The Gainesville, Florida, field office will close when its lease expires on February 28, 2021. Banks assigned to the Gainesville office will be reassigned to the Tampa field office.
- The Elizabethtown, Kentucky, field office will be relocated to Louisville when its lease expires on March 31, 2021.
- The Hopkinsville, Kentucky, field office will close when its lease expires on July 31, 2021. Banks assigned to the Hopkinsville office will be reassigned to the new Louisville field office.
- The Memphis area office and the Memphis field office will close when their lease expires on November 30, 2021. Banks assigned to the Memphis field office will be reassigned to the Little Rock, Arkansas; Jackson, Mississippi; and Nashville, Tennessee, field offices.
- The Cincinnati, Ohio, field office will close when its lease expires on December 31, 2021. Banks assigned to the Cincinnati field office will be reassigned to the Columbus field office.
The FDIC, which was created in 1933, insures deposits at banks in the United States. The agency employed 5,593 people at the end of 2019, which is down from a peak of 8,150 at the end of 2010. FDIC had significantly increased temporary staffing after the financial crisis of 2008.