Memphis-based bank will offer buyouts to 400 employees

(WMC-TV) – Memphis-based First Tennessee Bank will soon be adding to growing unemployment numbers.

First Horizon National Corporation is offering a voluntary buyout package to 400 employees within First Tennessee Bank.

"These will be people in operations, finance, human resources, accounting, and so forth," said John Daniel, Fire Horizon National Corporation executive vice president and chief human resources officer.

Daniel says the move will help reduce expenses and enhance profitability of its regional banking operation.

"I think the labor market is pretty fluid for people whose jobs have been targeted. I think even in the face of unemployment these people are amicably employable. Their skills are needed by other companies so it's never a good thing, but it won't have significant impact on the economy considering the number of jobs impacted," he said.

The severance pay will be based on years of service within the organization and will range from six months to one year's worth of pay.

The company will also provide medical insurance for one year for employees who take the buyout.

As for consumers who bank with First Tennessee, Daniel says the buyouts will have very little impact on them.

"Our bank is more strong because we continue to merge our expenses in line with the revenues," he said.

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