SOUTH BEND — Citigroup plans to close its bill statement processing center in June, putting 194 people out of work. A spokesperson says the layoffs are part of a plan to improve efficiencies and cut costs. The company laid off 40 workers last year.

“We are encouraging these employees to explore other positions within Citi and we are helping to facilitate that,” said Janice Tarter of Citi – Consumer Group Public Affairs. “Employees will be provided severance based on their length of service and other support services.”

Employees were told about the layoffs Wednesday night. Citigroup was hard hit by the mortgage crisis and may lay off tens of thousands of people worldwide.

The facility on Nimtz Parkway was once owned by The Associates Company. The Associates was founded in South Bend in 1918. Citigroup bought the company in 2000.

Phil Damico of the Chamber of Commerce of St. Joseph County said the loss of a company with so much history here stings.

“It's something that none of us like to see,” Damico said. “I think one of the things that's lost, yeah, we're losing commerce, yeah probably tax revenue, but there's going to be a number of people that are going to be out of work.”

Damico said it’s critical for the Chamber and government officials to do what they can to keep businesses from closing or relocating during the economic downturn.

“We really need to do an extraordinary job during these times to meet with these individuals and doing everything possible to help them succeed and grow here,” Damico said.

The Chamber plans to meet with businesses to see if they would like to move into the facility, but there is nothing concrete yet.