Hundreds of HSBC employees learned they will be keeping their jobs Friday after the state stepped in to aid an expansion plan with their new employers. YNN's Meg Rossman has more on the state's role in HSBC's transition to PHH Mortgage Corporation and why it will mean nearly 800 new jobs in the Town of Amherst.
BUFFALO, N.Y. — After six long months, 400 HSBC employees breathed a sigh of relief Friday, a far cry from the company’s original announcement back in May.
"It's a good thing that we're not losing these jobs because there was a worry that they'd be leaving the area," Erie County Comptroller Mark Poloncarz said.
Governor Andrew Cuomo announced Friday that the jobs will be retained when PHH Mortgage Corporation officially takes over the bank's retail mortgage and processing services in 2013 and along with it will come the creation of up to 400 new jobs and a new location.
"They wanted an open campus, they looked around Western New York and retrofitting didn't make any sense," Amherst Town Supervisor Barry Weinstein explained.
Instead, many of these HSBC employees will be moving from the Depew office to a new facility to be built in the Town of Amherst near ECC.
"This confirms our strategy for growing in Western New York that one of the areas where we can compete is back office operations," Weinstein said.
The $35 million move and expansion is part of a deal with Empire State Development in exchange for around $3 million in incentives for the company. Weinstein said he's hopeful the company will sign a long-term lease with the owner of the site. That's all expected to take place in 2013.