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U.S. Bancorp cuts 20 jobs at Fargo payment center

FARGO - The U.S. Bancorp Service Center in Fargo is cutting 20 positions, a company official said Thursday.

"Unfortunately we have to do that" because of economic conditions, said Steve Dale, senior vice president of media relations for the Minneapolis-based company.

The 20 affected employees work in the Service Center's payments area, he said.

The 20 are being offered severance packages and outplacement services, he said.

The Service Center, 4325 17th Ave., S., has about 1,100 employees and handles backroom processing for the company's credit card operations, he said.

The Service Center is Fargo-Moorhead's sixth-biggest employer, according to the Web site of the Greater Fargo Moorhead Economic Development Corp.

"Disappointing but maybe not surprising," given the weakness of the nation's credit markets, Brian Walters, the development corporation's president, said of the job cuts.

Walters said that he while sympathizes with the 20 people who lost their jobs, the cuts might have been even deeper if U.S. Bancorp wasn't a strong, well-run company, he said.

U.S. Bancorp has $266 billion in assets and is the parent company of U.S. Bank, the nation's sixth-largest commercial bank.

The company operates 2,791 banking offices and provides a wide range of financial services.

U.S. Bancorp earlier this week announced plans to slash its dividend by 88 percent to 5 cents per common share to retain cash and boost equity capital.