The Federal Deposit Insurance Corp. plans to close its West Coast temporary satellite office in Irvine, Calif., by the beginning of next year due to improving conditions in the banking industry.
According to a report in The Orange County Register, roughly 490 employees, all temporary contract employees, will lose their jobs by January.
In a statement, the regulator said, "Based on ongoing analysis and in recognition of the signs of the improving health of the banking industry in the western United States, the FDIC has determined that the current projected workload does not support continuing the temporary office beyond its initial three-year term."
The agency noted that the office has been "primarily staffed by non-permanent employees and contractors."
The FDIC moved into a new Irvine office building in 2009 with space to employ 600 workers dedicated to helping the bank regulator manage failed depositories in its western region. The plan was for the office to stay open for at least three years.
A FDIC spokesman said the Irvine employees will get outplacement services during the next 11 months.
