NO LOVE AT FIFTH THIRD BANCORP

 Am I Next? Layoffs at Fifth Third Bank

 

 

The oddly-named Cincinnati-based Fifth Third Bancorp has laid off an unspecified number of employees within its regional coverage. It appears that the personnel realignment is a routine part of the banks 2016 Project North Star long-term profit improvement plan that is based on both productivity improvements and cost reductions.  

Bank spokesperson, Larry Magnesen, said, “We look at staffing on an ongoing basis. We align our staffing levels with market demand and the operating environment. At any given time, there are areas of expansion where we are investing, usually to address our customers’ evolving needs. In other areas, our needs are lower, sometimes due to productivity improvements.  Clearly, staffing adjustments increase efficiency. That is a priority of the bank in order to invest in the capabilities we need to remain highly competitive in a rapidly evolving industry. Fifth Third is able to hold down the size of its layoffs by making regular adjustments to staff size and limiting staff additions in areas it might need to cut.”

Following the Republican Tax Plan, the bank adopted a $15 minimum wage for approximately 3,000 hourly workers and paid out $1000 bonuses to approximately 13,500 workers. It is unknown what effect that this may have had on ongoing operational costs or if the bank is simply cutting duplicate positions in preparation for the acquisition of Chicago's MB Financial in a $4.7 billion merger.  

It is expected that there will be many more layoffs during the integration phase of MB Financial.

By the way, the odd name comes from a 1908 merger between predecessor financial institutions, Third National Bank and Fifth National Bank. 

Are you asking yourself, Am I Next? 
 

NO LOVE AT BANK OF AMERICA (PASADENA)

 Am I Next? Layoffs -- Bank of America closing Pasadena California facility.

The Bank of America has announced that after 40-years it will not be renewing the lease on their Pasadena, California corporate office and will be laying off 575 employees. Some of the back-office customer service and processing support employees will be offered the opportunity to move to other bank facilities in Los Angeles, an enlarged Glendale facility, and Orange County. 

 

 

Are you asking yourself, Am I Next?

NO LOVE AT U.S. BANK

 Am I Next? U.S. Bank Layoffs

Minneapolis, Minnesota-based U.S. Bank, the seventh largest bank (by assets) in the United States, has announced that it will be laying off 260 employees and closing its Bedford, Ohio mortgage and consumer banking office. Work will be transferred to other U.S. Bank facilities. The decision to shutter the facility was based on the management of their real estate portfolio.

 

A company spokesperson, Molly Snyder commented …

"After a strategic review of our real estate footprint, we have made the decision to close the U.S. Bank satellite office in Bedford, Ohio, when its lease expires this fall."

It has been reported that the bank has also embarked on a quiet “talent optimization” scheme that sees affected employees rewarded with a “separation package” in return for a signed NDA (Non-Disclosure Agreement) that prevents the employee from publicly commenting on the separation or the bank itself. It appears that this is the bank’s preferred modus operandi as it avoids adverse publicity and the necessity to file WARN (Worker Adjustment and Retraining Notification) notices.

While the bank appears to be helped by the rising Fed interest rates, it also appears that the bank’s mortgage origination and servicing income are below expectations. Perhaps as a result of management’s aversion to risk in the mortgage market in a questionable economy. 

Are you asking yourself, Am I Next?