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MoneyGram shutters Brooklyn Center operation, cuts jobs

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MoneyGram plans to consolidate its Twin Cities operation to one location in St. Louis Park and will close its Brooklyn Center operation next year. The move will result in the layoff of 28 workers with additional layoffs likely to follow.

The Star Tribune reports that although the Brooklyn Center facility at 6701 Parkway Circle isn't set to close until its lease expires at the end of 2015, 28 employees will be lose their jobs on June 30 as part of the consolidation process. Currently 376 people are employed there.

The Business Journal reports that a MoneyGram spokeswoman indicated that more job cuts will result from the Brooklyn Center closing.

"We can't say specific numbers at this point," MoneyGram spokeswoman Michelle Buckalew told the Business Journal in an e-mail.

MoneyGram sent a required letter to the Minnesota Department of Employment and Economic Development that detailed the job cuts.

"All positions and jobs at the Brooklyn Center facility will be eliminated or relocated on or before the closure date," the letter reads. "The restructuring and reorganizing activities that resulted in the closing of the Brooklyn Center location were difficult business decisions. Unfortunately, economics makes it no longer cost effective to keep these positions at this location."

The money transfer company will consolidate its operation at its St. Louis Park location as part of its global restructuring strategy. MoneyGram moved its headquarters from St. Louis Park to Dallas three years ago. Before that, the company had 900 Minnesota employees; it now has 670.

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