Benzinga - Silvergate Capital Corporation (NYSE: SI) on Thursday announced that it will begin a series of substantial headcount reductions starting May 12.
Approximately 230 employees will be affected in this first wave of separations.
Further reductions are expected to take place on June 30, Aug. 30, and Nov. 30 this year or later.
The decision comes as part of the company's ongoing efforts to wind down operations and voluntarily liquidate its wholly-owned subsidiary, Silvergate Bank, in an orderly manner, complying with applicable regulatory processes.
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Following the initial reduction in May, the remaining 80 officers and employees will concentrate on implementing the bank liquidation, preserving the residual value of the company's assets, and addressing pending regulatory and other inquiries and investigations concerning the company and the bank, a press release stated.
Silvergate added that affected employees have been notified, and the company is offering severance packages, retention bonuses, and job placement resources to certain individuals.
The total costs associated with these workforce reductions are estimated at approximately $13.6 million, including $10.7 million for severance and retention bonus payments and $2.8 million for employee benefits and job placement expenses.
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