Chase Bank Ends Contract With Wingspan Portfolio Advisors, Prompting More Layoffs

Wingspan Portfolio Advisors Continues To Layoff Workers Due To Inability To Cut Deal With Chase.. Tells Chase Workers To "Hit The Damn Road Jack And Don'tcha Come Back, No More, No More, No More, No More".... 

Well I exaggerated in that last sentence but that, to me, is essentially what Wingspan is saying.

When Wingspan Portfolio Advisors purchasedJPMorgan Chase’s (JPM) mortgage servicing operations center in Melbourne, Florida in February 2013, the company gave 400 Chase employees who staffed the Melbourne office the opportunity to continue their employment.

Wingspan laid off dozens of employees from the Melbourne location last year after a servicing contract ended, but now the company plans to close the Melbourne office and lay off the remaining 150 employees, according to a report from Florida Today.

According to the Florida Today report, Wingspan sent a letter to the location’s workers, notifying them that Chase ended its contract with Wingspan.

"Wingspan's leadership reasonably believed until June 10, 2015 that a better outcome was possible, which providing notice of the impending possibility of a closure would have doomed," Terry Mitchell, vice president of human resources at Wingspan wrote in a letter that was distributed to employees on Wednesday and obtained by Florida Today.

When Wingspan acquired the Melbourne location in February 2013, the company said that it would offer positions to the more than 400 Chase employees that staffed the Melbourne location. In the deal, Wingspan also acquired the lease of the Chase office building.

"This is big news for us and we see it as indicative of where our industry is headed," then-Wingspan CEO and President Steven Horne said at the time. "We are now fully equipped to meet the needs of clients as they downsize the scale of their default servicing operations."

Wingspan went through several rounds of layoffs last year and this year. In addition to the Melbourne layoffs, Wingspan also laid off employees at its Monroe, Louisiana location and hundreds of employees at a location in Frisco, Texas.

Additionally, Steve Horne, the founder, CEO and president of Wingspan Portfolio Advisorswas replaced as the leader of the company he founded in 2008.

For a comprehensive look at Wingspan’s history, click here and here.

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