COLUMBUS, GA. - Synovus Financial Corp. plans to cut about 650 jobs over the next two years to save an estimated $50 million a year.
The regional banking company also announced Wednesday that it is reducing its dividend this quarter from 17 cents per share to 6 cents, a savings of about $36 million, from $56 million.
The job cuts comprise about 9 percent of the 7,100 employees in the five-state area. More than half are expected through attrition, and some have occurred with a hiring freeze with the launching of the company's Project Optimus to look at operations.
"The duration of the credit cycle and uncertainties around when economic conditions will improve further emphasize capital preservation as a key driver of shareholder value," chairman and chief executive Richard Anthony said. "We believe the stress on our loan portfolio will continue at least through 2009."
There was no immediate word on Synovus cuts in Columbus, where the company operates CB&T.
Capital One said Wednesday it will close its GreenPoint Mortgage servicing center in Columbus, eliminating 220 jobs by the end of the year, including customer service, production support, collections and investor reporting.
Spokeswoman Julie Rakes said the center's role has diminished "as no new loans are being originated."
"Capital One explored a number of options for this work and determined that outsourcing it will enable the company to effectively and efficiently manage the operations as the portfolio continues to diminish," Rakes said.
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