Butterfield Streamlines, Closes Rosebank Centre

April 17, 2019

Bank of Butterfield completed a “multi-faceted streamlining initiative” in which 30 employees in Bermuda accepted voluntary early retirement packages, 11 positions were made redundant, and Butterfield’s Rosebank Banking Centre and Drive-Thru Teller Services in Hamilton have closed effective today.

Bank Butterfield Bermuda TC April 17 2019

The full filing with the BSX stated, “The Bank of N.T. Butterfield & Son Limited today announced that it has completed a multi-faceted streamlining initiative that reflects the changing banking environment and positions Butterfield for improved operating efficiency.

“Under that initiative, headcount in the Bank’s Channel Islands subsidiaries was recently reduced by 15 positions. This change was effected to right-size the organisation following the onboarding of clients and staff from the acquired Deutsche Bank banking and custody business in the Channel Islands. It reflects Butterfield’s more automated back office environment, which allows for efficient transaction processing with fewer employees.

“Reflecting Bermuda customers’ changing banking preferences, which have resulted in a substantial reduction in the volume of in-branch transactions, Butterfield’s Rosebank Banking Centre and Drive-Thru Teller Services in Hamilton have closed effective today.

“Under the streamlining measures, 30 employees in Bermuda accepted voluntary early retirement packages, and 11 positions were made redundant across two departments. As retiring employees leave the Bank over the next several months, their responsibilities will be reallocated within existing operations locally and internationally to foster further improvements in operating efficiency.

“Going forward, Rosebank customers wishing to conduct in-branch transactions are advised to visit one of Butterfield’s three other Banking Centre locations: Reid Street [Hamilton], St. George’s or Somerset. Walk-up and drive-thru ATMs will remain in place at Rosebank.

“Premium Banking services will relocate to the Reid Street Banking Centre effective Monday, 22 April. Safe Deposit customers may continue to access their lock boxes at Rosebank until 4:00 p.m. on Thursday, 18 April 2019, after which time they will be accessible at Butterfield’s Reid Street Banking Centre [Ground Floor – Front Street Level].”

Commenting on the Rosebank closure, Michael Neff, Managing Director – Bermuda, said “Reflecting customers’ preferences to increasingly conduct their banking transactions through electronic channels, we have seen in-branch volumes drop by over 50% during the last decade.

“There is no longer enough volume to justify the continued operation of two full-service Banking Centres in Hamilton, and we have therefore made the decision to discontinue in-person services at Rosebank.

“Later this year, Butterfield will begin renovations to its Head Office at 65 Reid Street in Hamilton, which will include improvement of all customer areas and the development of a modern, expanded banking hall on the Front Street level, designed to make customers’ experiences more efficient and enjoyable.”

Michael Collins, Butterfield’s Chairman and Chief Executive Officer, said “Following the release of our 2018 earnings, we advised the market that we would be streamlining operations to take better advantage of our international footprint and improve expense management. These are key steps in that process.”

“While it is never easy to implement such changes, we are pleased that most of the headcount reduction in Bermuda was achieved through voluntary early retirements, and our employees are being well supported through this process.

“We are confident that these are the right changes to position Butterfield for continued growth and development as we seek to become the world’s leading offshore bank and trust company.”

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Comments (54)

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  1. 2 Bermudas says:

    But de Pee El Pee says de economy is booming!!

    • Scott says:

      That’s irrelevant.. the economy can be massively booming, but that doesn’t mean people will want to walk into a physical bank instead of using online methods. If there’s no use for the employees, why keep them on?

      It’s not the PLPs fault. It’s a worldwide transition.

      • 2 Bermudas says:

        Maybe if more people were living and working in Bermuda they would still have jobs??

        • Onion Juice says:

          There are a lot of people living in America, but brick and mortar places in America are closing because of online shopping.
          But just like the world reccession a few years ago, we have to put some blame on this Government.

          • sandgrownan says:

            Disingenuous OJ or just plain stupid?

            No-one blamed the PLP for the global recession, what they did blame them for was rampant spending, incompetent financial management of major capital projects, and the inability to plan effectively. Imagine, we could have paid for a new airport in cash!

            And all the time, killing the goose that was laying the golden egg.

            • Double S says:

              Ask him to explain why all of our trading partners and similar sized/structured economies experienced a recession for approximately 18 months from 2009 and ours remains ongoing 10 years later.

              Ask him why we are in a recession when the US is experiencing robust economic growth right now.

              He won’t answer you, as the answer will debunk the myth that our issues are solely from the so called ‘global recession’ from a decade ago.

              Our economic issues are structural in nature.

              • question says:

                Exactly. Most other countries were in and out of recession in 15 months, or 5 quarters. Bermuda’s PLP recession was over 7 years, until the OBA government turned it around.

                And now the PLP has driven the car into the ditch again, like they always do.

            • OMG says:

              You forgot the racist slur by a Minister. Jobs will continue to shed and Bermudians will continue to suffer for as long as Burt has nasty people in his cabinet.

          • campervan says:

            @ OJ. “Shut De Island down!” LMFAO. what goes around…

          • Lets Be real says:

            The U.S. currently welcomes over 1 million new immigrants per year to their shores.
            Bermuda has shrunk in population.
            We are suffering because we are shrinking.
            Watching a slow motion train wreck over the last 10 years has been incredibly painful.
            Grow the population. Period.
            Those in Govt could care less as they get a a paycheque every week. We, the tax payers, are paying .
            Hold on as the rubeer is hitting the road now and the tax base is shrinking.
            It may actually be too late.
            So very sad and so poorly managed.
            Learn from the Cayman Islands. They were forward thinking and welcomed foreigners.
            We did the opposite due to the poisoning of the word expat or guest worker by previous insular governmental decisions.

            • Onion Juice says:

              You are comparing 21 square miles to America?

              • dark star says:

                Actually he is right—Cayman is doing it right and is beyond booming. The Turks & Caicos are booming on the tourist trade (on Saturdays they get 20+ planes flying in and out!!) To sustain all the booming these 2 islands have a massive foreign population and it allows the locals to dictate their working terms and pretty much take their time and do as they please. When things are jamming the locals are set b/c they really don’t have to do to much but collect (we experienced over 20 years of this) When things are down the locals get vexed b/c now they have to get their thumbs out of there behinds and work their tails off or they just won’t have jobs and there are no jobs for them

          • LaV says:

            Oh look, someone who can spell is using the Onion Juice account.

        • Vida Smith says:

          That the reason why they leave because they can’t find jobs in Bermuda and maybe if the expats would keep their monies here in Bermuda and not send all of it back home Bermuda would not have this problem… um just saying!!

          • Double S says:

            You mean expats don’t eat, buy gas, rent accommodations, pay taxes etc. whilst in BDA?

            The xenophobia of us Bermudians will be the ultimate downfall of this island.

            • LaV says:

              “The xenophobia of us Bermudians …”…and the pathetic use of the language….it’s almost as if there’s no education on the island.

          • Toodle-oo says:

            And how does you or anyone else’s saving sitting in a bank help anyone ?
            Isn’t it the exact same as any money you spend on trips and overseas spending ?
            Would you like to raid my savings account seeing it isn’t doing anything for you even though it’s ‘here’ ?

          • Wahoo says:

            I always say that to be eligible to vote in Bda you should prove that you have an understanding of how our economy works. You are a prime example of why. I am guessing you were against the initiative to attract billionaires as tourists also?

      • question says:

        I knew it wouldn’t be long before the PLP blame Bermuda’s latest PLP recession on some kind of ‘worldwide’ thing.

        • Toodle-oo says:

          The last ‘global recession’ was in its timing the best thing that could have happened for the PLP and their hardcore. They still haven’t figured out the relationship though with what’s happened to our economy since the last election . Pure denial .

          • Joe Bloggs says:

            Not to worry. Leading economists are predicting the next global economic downturn to occur in 2020/2021. Just in time for our next general Election!

      • andrew says:

        ‘If there’s no use for the employee, why keep them on?’

        Ahhh, if only Government would use this way of thinking for the civil service!

      • Wahoo says:

        Kind of like having less busses so we need less drivers?

      • question says:

        “If there’s no use for the employees, why keep them on?”

        Is that a bit like saying if there are less children we can close a couple of schools, make some teachers redundant, and save some unnecessary expenditure?
        Why is that idea so familiar?

  2. gustav says:

    no worries
    Fintech will cover that ……

    • truthertz says:

      Fintech (ie ATMs, online banking, mobile apps. etc) is what caused the >50% drop in utilization of teller services.

      It will only get worse as time and innovations go on.

      • Herman says:

        Yup, just like the horses when they made the railroads.

      • Sandgrownan says:

        Or better? Who really likes going into a bank, standing in line to be met with a scowl, getting crap service?

        Do as much as you can online. Really.

    • DeOnion says:

      this IS fintech at work – financial technology, ie ATMs, internet banking etc etc fintech can destroy jobs as well as create

  3. Really says:

    And the banks keeping making millions in profit to benefit shareholders and C suite executives.

    They charge ridiculous fees for everything.

    They need regulating like telecoms and electricity.

    Modern day bandits behind the false curtain of capitalism

    • bluenose says:

      Why don’t you buy shares?

      • Really says:

        You know the game

        • bluenose says:

          It’s yours to play too

        • Bluenoser II says:

          You mean buy NTB stocks publicly through any brokerage account game? I know it well.

          Everyone paints “shareholders” as evil, until they realize the evil shareholders are their pension plan and retirement fund.

  4. Tell’er says:

    41 more jobs bite the dust

    • sandgrownan says:

      That’s the real issue, not BNTB’s business. That’s 41 less salaries buying goods and services in the local economy.

      Tick tock tick tock.

      • Toodle-oo says:

        People will somehow have to figure out how to survive off of savings or whatever but the clincher is all those less payroll and hospital levy taxes !

  5. trump supporter says:

    maybe they can put all that gold in there, already have vaults and safes.

    Lets hear the govt spin on this.

  6. Mark says:

    Burty and Cornal Burch have already been on site measuring for Fintech curtains.

  7. ..and many who jog daily or ride the pedal bikes ,are sure to get a new job.
    We Bermudians must monitor these people.Their mission is not a positive one for BORN BERMUDIANS, especially. NO TRUST here!!!!
    PAY ATTENTION, BORN BERMUDIANS and report suspicious work/job incongruencies to Government!!!!

  8. Sister Nancy says:

    It continues to amaze me why only the Bermudian workers are made redundant. They gave out 80 early retirement offers 3 weeks ago to every staff member 57 and over. Yet the ones in the Executive positions making the decisions are over 57. Where is the fairness and loyalty to the local staff members that have been there with the bank during there lowest periods. Just terrible what they have done to the local staff. I do not know how they can sleep at night. SMH very sad.

    • Double S says:

      As it was just a voluntary retirement offer not one that took it up was forced to do so and thus they decided to do so on their own accord.

      • Toodle-oo says:

        Not always that simple though . I once worked for a company that during the 5 month slow season staff were ‘encouraged’ to take what was called ‘leave of absence’. As a side note if government employees made a stink about their one day a month layoff day under the OBA they would have shut the island down under this scheme. The minimum time that could be taken was one pay period , or two weeks. That in itself is equal to almost one year’s worth of what the then gov’t was asking and most people took 2 to 5 pay periods all in the name of helping the company even though it messed up their pension and seniority AND it wasn’t something they informed you would happen at the time of signing on either !
        The alternative was that if everyone didn’t go along with it and share the burden the lowest seniority 40% of the staff would be out of work for 5 months.
        I have a feeling that had the employees of the bank not voluntarily taken early retirement in the numbers that they did the bank would have simply severed the required 40 people whoever they were.

      • Sister Nancy says:

        Yes, they were more or less forced to take. To think you think this is okay. REALLY

        • Joe Bloggs says:

          I’m not sure I see your point. Are you suggesting that jobs are for life?

        • LaV says:

          SisterNancy…are you high?
          I’m guessing you’ve never had a job…because you certainly aren’t in tune with reality.

      • frank says:

        banks and corporations are all about the money maybe if more people would have taken the retirement package then there may have been no redundancies
        also the people that were made redundant with out notice are by the labor act are entitled to 4 weeks pay on top of their payout

    • Joe Bloggs says:

      Ok, I have 2 obvious questions.

      First, where does the bank say that all 30 redundancies are Bermudians?

      Second, if you get rid of the “executives” you appear to despise, who will do their jobs? The redundant bank tellers?

    • LaV says:

      “Where is the fairness …”

      in a fairy tale, sweetie…grow up, you just look stupid.

  9. Jason says:

    Oh my word the PLP are destroying our country again fool
    Me once fool me twice