NEW YORK (QUEEN CITY NEWS) — Truist will begin slashing its number of employees as part of the bank’s move to “aggressively cutting costs,” the CEO announced Monday.
Presenting at the Barclays Global Financial Services Conference in New York on Sept. 11, Truist CEO Bill Rogers hopes the Charlotte-based company will cut $750 million in gross costs over the next 12 to 18 months.
Truist is coming off a second quarter where it missed revenue projections by $12 million, and stock has dropped nearly 7 percent over the last six months.
Of the $750 million, $300 million will come from a reduction in workforce. Truist also plans to simplify its organizational alignment and cut its technology expenses.
“While many of these cost saves will be achieved through near-term personnel-related reductions, they’re also a manifestation of our organizational desire to achieve institutional excellence,” Rogers said. “And we consistently look for ways to improve efficiency over the longer term, including through automation and other investments in technology.”
The personnel changes come from looking at spans and layers (management layers within an organization), consolation of redundant functions, restructuring select businesses and geographic simplification.
Rogers emphasized that now is the time to make these changes.
“I’m highly aware our financial performance has not met expectations,” is how he opened the presentation.
Rogers was named chairman in March 12, and chief executive officer in September 2021, after serving as president and chief operating officer between December 2019 and September 2021.
Truist’s stock is down 31 percent year to date, mostly from a significant drop in March.
