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Marce Edwards is the business editor. She has been at The News Tribune for seven years and has written about technology and big businesses in the South Sound including Weyerhaeuser and Russell. Before moving to Tacoma, she worked at The Idaho Statesman in Boise. She is a Northwest native who likes to garden and refuses to use an umbrella. She lives in Tacoma with her husband and two kids.

C.R. Roberts is a Tacoma native. Before joining The News Tribune, he worked as a freelance writer and part-time cowhand on a cattle ranch in Northern Idaho. He writes about small business, personal finance and other business issues.

John Gillie writes about the aerospace and airline industries, commercial development and consumer issues. During his 30-year-tenure at The News Tribune he has covered issues as diverse as the Native American fishing rights disputes, crime and the courts, the wood products industry and energy. He lived in Tacoma with his family for 25 years, but now lives in Kent because his wife heads a five-state non-profit foundation headquartered in Ballard, and it only seemed a sensible compromise to make considering their workplaces are 40 miles apart.

Kelly Kearsley has been a business reporter at The News Tribune since 2005. She covers the Port of Tacoma and international trade. Being born and raised in Spokane she’s used to living in cities with inferiority complexes and, in fact, prefers it. Prior to working at The News Tribune, she spent three years as a reporter for The Bulletin in Bend, Oregon and another year working stints for The Associated Press and Seattle Times. She graduated from Pacific Lutheran University. She lives in Tacoma with her husband and miniature schnauzer.

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The Biz Buzz
Get the most up-to-date news, insights and analysis of Tacoma, Pierce County and South Puget Sound business.
Tuesday, January 13th, 2009
KeyBank will close its Tacoma call center, laying off 200 employees
Posted by C.R. Roberts @ 02:03:13 pm

KeyBank’s nationwide call center in Tacoma will close this year. Two hundred employees will be laid off from the facility at 2420 S. State St. on the edge of Hilltop.

Tom Spilman, KeyBank South Sound District president, spoke with the affected employees in meetings earlier today. He explained that other call-center positions would be made available in Cleveland, where the bank has its headquarters, or in Buffalo, NY. Other positions may also be available in the Puget Sound area, he said.

“We anticipate all these employees will be employed through June, and perhaps through the end of the year,” Spilman said in an interview this morning.

The layoffs “will be transparent to clients” and will not affect the bank’s 146 branches in the state, he said.

Fully 170 other employees at the facility will maintain their jobs. These workers are engaged in such back-office functions as vault management and internal mail delivery.

The employees being laid off may also find opportunities in the Puget Sound region, Spilman said. “We have a ton of talented people there. We will assist them with employment with Key and elsewhere.”

The decision to close the canter – a decision made in Cleveland – reflects a changing environment in banking, Spilman said. The volume of calls to the bank has decreased since the center opened in June, 2006, and more clients have been making use of online facilities.

“The volume starts to decrease,” Spilman said. “When you look at our efficiencies and volume, I think it’s the right decision. But it is painful.”

During the meetings with workers this morning, he said, “there was emotion in the room. We take the decision seriously.”

The closure does not portend further cuts, he said. Key’s South Sound region employs 549 people, and the Seattle district 925. The bank has also made recent commitments to local branches, ordering major rehabilitation to branches in Shelton, Gig Harbor, Lakewood and Puyallup.

“We continue to invest in our branches and our network,” Spilman said.

Categories: General, Economic Development, Banking • 19 comments

COMMENTS:

AngelikRayne @ 14:26 - Tuesday, January 13th, 2009 Email
You have no idea how happy I am to hear that I left the company. Since my departure for a better position with another company, I have been waitingo for something like this to happen. I'm sorry that I have so many friends affected but glad that it didn't happen to me. = [
chucksteele @ 14:51 - Tuesday, January 13th, 2009 Email
Being a Key Bank customer since they swallowed Puget Sound Bank, I have stayed with them since then. Having maintained a support presence here was important to me.
After all of these years, they are finally chasing me out the door.
I will now seek out one of the local community banks.
Too bad. I know my account numbers by heart.
dmanlyr @ 15:24 - Tuesday, January 13th, 2009 Email
I guess the "Key" is not so "key" to Tacoma. As long as the jobs do not go overseas, I just accept it as business as usual. I do draw the line at laying off Americans and sending jobe overseas though.
ldozy1234 @ 16:13 - Tuesday, January 13th, 2009 Email
That's what helped wreak the customer service at ol' WAMU. When they moved their call center to apparently India, what a disaster. I hated ever trying to call and deal with some overseas agent. Guess I now leave Key Bank for the same reason. So far Wells Fargo hasn't seemed to out sourse their call center and I guess I will switch all my accounts over to them.
lenbarrett @ 16:34 - Tuesday, January 13th, 2009 Email
I don't understand. Their "national" call center is here and closing due to a reduced demand for the service. instead of reducing the number of employees/service locally (to match the demand) they are closing and moving the facility to Cleveland so that everyone gets screwed.
I guess you have to really like to live in Cleveland to live in Cleveland.
Maybe everyone else should take a close look at the fee structure that Key Bank charges for account service and compare that to what is available elsewhere.
dbreneman @ 16:40 - Tuesday, January 13th, 2009 Email
http://tildebang.com
I find it hard to believe that Key Bank has any customers, let alone enough to warrant a call center. Since they took over PSNB their fees skyrocketed, they closed drive-through windows, they stopped opening many major branches on Saturdays, and that's all I know about because that's the level of abuse they'd heaped on their customers when I closed my last account there a decade ago. I'm sure they've engaged in much more customer abuse since then, Good riddance to them. Try Columbia Bank, folks. Most of the good PSNB employees ended up there.
ewthdble @ 16:47 - Tuesday, January 13th, 2009 Email
they are outsourcing to a third-party, U.S.-based strategic partner
ratujack @ 19:03 - Tuesday, January 13th, 2009 Email
Key Bank you are a disgrace and screwed us here in PIERCE County.
tacoma98404 @ 19:48 - Tuesday, January 13th, 2009 Email
They are not outsourcing, nor are they "closing and moving to Cleveland." There are 3 call centers in the country (here, Cleveland, and Buffalo) and they're just closing the Tacoma one. They're already in Cleveland. It's unfortunate (my husband is one of them being laid off), but not surprising given this economy.
luvnlife @ 20:23 - Tuesday, January 13th, 2009 Email
Key Bank sucks and I feel sorry for the employees! I quit them 15-20 yr ago........In my opinion, Columbia Bank, Credit Unions (BECU) is a TON better! I think Columbia Bank is AWESOME!!!!!!!!!!! Key Bank just had that "Bargain Basement" feel......
Customer Service, wheweeeeeeeeeeee...Yikes... What else do ya say?!
luvnlife @ 20:24 - Tuesday, January 13th, 2009 Email
Key Bank sucks and I feel sorry for the employees! I quit them 15-20 yr ago........In my opinion, Columbia Bank, Credit Unions (BECU) is a TON better! I think Columbia Bank is AWESOME!!!!!!!!!!! Key Bank just had that "Bargain Basement" feel...... Customer Service, wheweeeeeeeeeeee...Yikes... What else do ya say?!
hiccup1234 @ 21:56 - Tuesday, January 13th, 2009 Email
Was this before or after they got their chunk of (Pierce County) taxpayer money from the Federal bailout?

Folks, vote with your business.
tacoma98404 @ 22:23 - Tuesday, January 13th, 2009 Email
I stand corrected. Some of their positions are outsourced, but only to Utah- not out of the country.
drxtreme @ 22:27 - Tuesday, January 13th, 2009 Email
I couldn't agree more with you luvnlife, Credit Unions are the way to go, no stock holders to please other than it's depositors. I hope KeyBank customers can deal with the thick accents of the Bangalore India that will now be paid with your money. Just another example of corporate America showing its monetary ownership roots are deep in NON US holding companies that are getting billions of our dollars to bail them out! Welcome to the real world of a "Global" economy where we only consume and manufacture little to nothing.

FrustratedinTacoma @ 22:52 - Tuesday, January 13th, 2009 Email
I am one of the many employees who will be losing their job, I have been with this company for almost 12 years. Although this has been a roller coaster of a day. Key Bank has made a decision based on several different aspects.
They are NOT opening up other call centers, they already have 2 in operation. And as tacoma98404 stated, the outsourcing is something that KeyBank has had in effect for quite sometime and they are in the US, and will remain.
We do have a option to relocate. They will be having a 3rd party come in and assist in resumes and job interviewing.
Although the Call Center is closing, KeyBank will be doing everything possible to help those who choose to stay with the company find other job opportunities.
I want everyone who decides to bash KeyBank to realize they are doing what is best for the company, so they don't end up being another WaMu.
Don't get me wrong I am very frustrated, at first i wanted to just walk out, but i have to look towards my future for me and my children.
govwatcher @ 01:41 - Wednesday, January 14th, 2009 Email

This is the tip of the iceberg.

Local banks throughout the state are on shakey ground financially. Over the next month many will be publishing their 2008 fourth quarter and year end results.

"Sterling plans to record a fourth-quarter provision for credit losses of approximately $230 million for the quarter ended December 31, 2008. The increase in provision relates to worsening economic conditions, the continued stress on real estate values, increasing levels of both classified and non-performing assets and higher net charge-offs.

As a result of the higher provision for credit losses and the non-cash charge for impairment of goodwill, Sterling anticipates that it will report a net loss for both the fourth quarter and for the year ended December 31, 2008.

Sterling's board of directors has decided to suspend its quarterly cash dividend payable on its common stock until economic conditions improve."

Last time news was this bad, Sterling traded as low as $2.36 a share. Wednesday should tell us if it will again.

To buy or not to buy? Or to sell or not sell, if you already own the stock?

It's beginning to feel like Las Vegas.
dbreneman @ 07:48 - Wednesday, January 14th, 2009 Email
http://tildebang.com
FrustratedinTacoma writes: "I want everyone who decides to bash KeyBank to realize they are doing what is best for the company, so they don't end up being another WaMu."


I'd suggest that WaMu got into trouble primarily by making reckless loans to people who were bad credit risks. I got a whiff of something unsettling there when I refinanced my house in 2000. The credit report they showed me showed I owed money on a piece of property I'd since paid off, balances on credit card accounts I'd closed, and similar crazy items. I protested that this wasn't an accurate credit report, and my credit was much better than their report indicated. "Don't worry!" said the loan officer, "You're getting our best rate - who cares what this says?" That exchange made me very glad that I was the one who would owe them money, not the other way around.


Key Bank, on the other hand, is plainly abusive of their customers. That may be the way to run a bank on the east coast, but it doesn't wash here. If they'd treat their customers as valued customers rather than mindless consumers, "what is best for the company" would take care of itself.

Benafoo @ 07:30 - Monday, January 19th, 2009 Email
Ok first of all to all of those who are saying that Key has been planning this for a long time, they are full of it. First of all Key Banks Call Center in WA used to be at the Tacoma location, then it moved to auburn. While in Auburn Key spent 5 Million dollars renovating the tacoma location and moved the call center back in June 2006. During my training for the call center during this time many of us asked about being outsourced and they assured us that would not happen due to the recent renovation. The second point about the drop in volume of calls is also not quite acurate. While working for Key's call center there were so many calls people were waiting for 30 to 45 minutes to speak to someone, all during the hours all three call centers are operating. And since I left Key I kept my account there and have on many occasions held for several minutes so their workload has not decreased if anything it has increased. And as far as Key goes as a financial institution lets just say they are worse than most charging the poor every fee imaginable while the rich reep the rewards their fees are out of control, (most calls key gets are about thier fees) and on top of all that they charge for anything from CALLS TO THE CALL CENTER (YES THEY CHARGE YOU TO CALL THE 1800 NUMBER), TO VISITS TO THE BRANCH, AND DONT EVEN THINK ABOUT USING ANOTHER ATM BECAUSE NOT ONLY WILL YOU PAT THAT FEE, KEY WILL ALSO CHARGE YOU A 2.00 FEE AT THE END OF THE MONTH. I feel for those who are losing their jobs but Key Bank is the worst and they will lie, cheat and literally steal to please their shareholders. I hope they go under, if any bank deserves it they do, if for nothing else than their greed and moral bankruptcy.
Benafoo @ 08:00 - Monday, January 19th, 2009 Email
oh yeah and the only people that will benefit from the help they are offering to find other employment, are the ones in upper management, and forget offering any relocation payment if they were offered a position in another state. Key does not give a crap about poor people, they told us that. "The quality of our clients outweighs the quantity." That is to say that they dont care if the poorer clients leave Key as long as they can rape thier accounts first. I had to quit after having people beg me for their hard earned money back and I was not allowed to help them. True, some people are to blame for their own irresponsibility but Key is unforgiving and will do everything in its power to twist their clients accounts to generate fees. I have a concience and anyone who does well in the theiving, rotten banking industry not only lacks concience but moral fiber as well. Key lost $4 billion in fees in 2005, think of how much they made off of them. Only the lower middle class pays fees. You do the math. And we wonder why the banking industry is failing. The poor are out of money to steal.

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