Goldome today said it has agreed in principle to sell its Instabank network to the New York Switch Corp., in a move that will eliminate "the vast majority" of the subsidiary's 125 jobs at its Cheektowaga office.
Under the deal, New York Switch, which operates the NYCE network of automated teller machines, will purchase Instabank's 207 in-store ATMs and banking terminals.
"There are going to be job eliminations. My sense is that NYCE will keep some positions, but eliminate the vast majority," said Joyce M. Buchnowski, a Goldome spokeswoman. "There's going to be some consolidation to avoid a duplication of services."
All Instabank employees have been given severance packages and asked to stay with the company until the sale is completed, probably by mid-July, Ms. Buchnowski said. Once the deal is completed, an unspecified number of Instabank workers have been offered "bonus" packages to stay with the company for an undetermined period of time to help facilitate the sale, she said.
Goldome said it is selling Instabank as part of its program to restructure its operations by concentrating on traditional banking activities in its core markets of New York state and Florida.