Hundreds of Aurora Bank employees in Scottsbluff, Neb., have been notified that they will have to reapply for their old jobs.
Scottsbluff officials confirmed the mass layoff notice. City Manager Rick Kuckkahn said Aurora Bank officials notified the city, and Aurora Bank employees in Scottsbluff learned of the layoffs Tuesday.
Aurora Bank FSB, a subsidiary of Lehman Brothers Bancorp Inc., is undergoing an acquisition process. In March, Nationstar Mortgage LLC announced it had signed an agreement to acquire approximately $63 million in residential mortgage servicing assets from the troubled residential mortgage servicing company.
An official count of the number of employees staffing the Scottsbluff office was not yet available, although some estimates put the number at between 400 and 500 employees.
Twin Cities Development Director Rawnda Pierce said employees have been notified that Aurora Bank is terminating the employees and they may reapply for positions with Nationstar. She called the layoff announcement “pretty typical” during an acquisition.
“We are hopeful that they (Nationstar) will hire a majority of the employees back, and even grow and expand here,” she said.
Marshall Murphy, executive vice president of investor relations with Nationstar, said Aurora Bank had to notify its employees because of requirements of the Worker Adjustment and Retraining Notification Act. The act requires that companies with 100 or more employees provide 60 days' notice in advance of a scheduled mass layoff.
Murphy said the company intends to hire a significant number of Aurora Loan employees.