A Staff Report
Charlotte, NC – In a recent announcement, Truist, one of the banking giants in the United States, revealed its plans for “sizable reductions in force” within the next six months. The move comes as part of a broader effort to streamline operations and reduce expenses. Truist CEO Bill Rogers announced during a conference on Monday, shedding light on the company’s strategic restructuring.
The key aspect of this restructuring involves simplifying Truist’s senior management team. Three leaders have been appointed to oversee the consumer, wholesale, and insurance units. This marks a significant shift from the seven separate heads that existed when BB&T and SunTrust Banks merged in late 2019. As indicated in a presentation, the aim is to improve operational efficiency, enhance accountability, reduce risk, and open up new revenue opportunities.
The cost-saving initiative is designed to save $750 million in gross costs over a period of 12 to 18 months, with the reduced staff playing a crucial role in this effort. The staff reductions will involve consolidating redundant functions, primarily occurring during the restructuring of select business areas, according to the Charlotte-based financial institution. Truist currently employs approximately 53,000 workers, down from around 5,000 since the merger took place.
The reductions in force are projected to account for approximately $300 million in savings, while simplifying the organizational structure is expected to save $250 million. Additionally, optimizing technology is set to contribute $200 million in cost savings, as outlined by the bank.
In July, Truist had already initiated reorganization in its small- and mid-sized business lending operations, which involved altering job roles, reducing the number of regional presidents, and implementing some staff layoffs, particularly in smaller cities. This strategic shift is part of the bank’s broader plan to emphasize digital-oriented banking products and services.
These changes signal a significant shift in Truist’s operational approach and a determination to adapt to evolving market conditions.
In August of this year, Truist Financial Corporation (NYSE: TFC) and Truist Foundation announced $17 million in commitments to support affordable housing in Charlotte and career development and economic mobility programs across North Carolina.
The Truist commitment consists of three initiatives:
- $15 million equity investment from Truist Community Capital in the Housing Impact Fund II to combat displacement, secure affordable housing and facilitate critical services for low-to-moderate income families across Mecklenburg County. It is the second such fund formed by Erskine Bowles, former head of the U.S. Small Business Administration and White House Chief of Staff under President Clinton, and Nelson Schwab, a founding partner of Carousel Capital.
- $1 million Truist Foundation grant to Per Scholas North Carolina to expand technology skills training in rural North Carolina.
- $1 million Truist Foundation grant to NPower to provide technology skills and employment opportunities for military-connected individuals and underserved young adults in the Raleigh community.
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