Columbus, Ohio-based Huntington Bank, a large regional financial institution, has announced that it will eliminate up to 200 jobs across its seven state footprint. The reason given by company is that there has been a significant drop in revenue caused by interest rate volatility. According to a company spokesperson, “While our business continues to perform well, the rapidly changing interest rate environment fundamentally impacts our revenue. In response, Huntington has taken a variety of measures to reduce expenses, which includes adjusting staffing levels. We understand the weight of the decision on our colleagues and will support them through a planned transition. Huntington will continue to enhance the performance and efficiency of the company, while investing in technology to meet the needs and desires of our customers.”
The basic problem with interest rate declines is that many investors move their funds into higher-yielding investments, refinance higher-cost debt, and reduce account balances which the bank uses to meet core capital requirements or lends to other institutions on an overnight basis.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?