NO LOVE AT FIFTH THIRD BANCORP (02/01/24)

FEBRUARY 1, 2024 — CLOSING 29 BRANCHES

Fifth Third Bank plans to close 29 branches this year across its Midwest and Southeast footprint. Fifth Third currently operates about 1,100 branches in 11 states.

CEO Tim Spence noted, “Increasingly we’re taking locations that were well-placed 30 or 40 years ago but aren’t in the primary traffic flow today and consolidating them into new locations. Other branches are being closed to offset costs associated with new branches opening in high-growth markets.”

OCTOBER 23, 2020 — COST CUTTING AND LAYOFFS CONTINUE

The bank’s Chairman, CEO, and President, Greg Carmichael, noted in the latest Q3 (2020) report…

“Given the anticipated revenue headwinds, we are very focused on optimizing our expense base to maintain healthy levels of returns. To that end, we took proactive measures during the quarter to ensure Fifth Third continues to generate sustainable, long-term value for shareholders. We continue to believe we are well-positioned to emerge from the pandemic as a top performing regional bank."

Fifth Third Bancorp is continuing with cost reduction plans that target at least a $200 million cost reduction by Q2 (2021).

Areas targeted for cost reduction include reductions in employee headcounts, elimination of vendor contracts, branch closings and a reduction in corporate office space, including entire offices. Of course, the bank mentions “technology changes and process improvements involving automation” which directly impacts headcount.

APRIL 2, 2019 — 493 TARGETED FOR MAY LAYOFFS.

The bank continues its integration plan by laying off 493 in May 2019. Most of those laid off will be back-office and support personnel, most of which will The bulk of the job cuts will take place in Rosemont, Illinois with about 24 located at MB’s former corporate headquarters in Chicago, Illinois.

MARCH 28, 2019 — LAYOFFS BEGIN.

Fifth Third Bancorp is pursuing its integration plan with MB Financial and will be permanently closing MB’s Ann Arbor, Michigan office and laying off 87 back-office and supervisory employees. The layoffs are expected to start May 13, 2019 and continue through September 29, 2019

Original Post…  

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. 

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 ... are you now wondering, Am I Next?

NO LOVE AT BANK OF AMERICA (03/11/25)

MARCH 11, 2025 — 150 INVESTMENT BANKERS

Bank of America eliminated 150 junior banker employees, including associates and analysts, in its investment bank division. According to the company, the personnel adjustments follow an annual performance review process which saw some members of management, including managing directors, directors, and vice presidents being laid off.

NOVEMBER 10, 2021 — 3,000 EMPLOYEES AT RISK IN BREA, CALIFORNIA

The Bank of America has confirmed that it is leaving its 637,503-square-foot operations/call center facility in Brea, California by July 2022 due to an early lease termination that will see the property be repurposed into an Amazon distribution center.

According to a company spokesperson, “We’ve been in discussions with the property owner and have agreed to exit the building in July 2022. This is all new and happening very fast. Our priority right now is to keep these employees in their current roles up until July. We don’t know where we’ll go after that.”

Many of the call center employees have been working remotely since the start of the COVID-19 pandemic, so their jobs may be preserved if the bank transitions to a smaller facility and further automates the call process using artificial intelligence response systems.

JANUARY 24, 2019 — CALL CENTER EMPLOYEES LAID OFF IN MARYLAND

Another call center consolidation will cost 74 employees their jobs at the bank’s Hunt Valley, Maryland call center. Operations will be transferred to other centers. It appears that technology is reducing the need for humans at call centers as clients turn to self-service websites, mobile devices, and chat messaging to interact with the bank.

MAY 31, 2018 — Original Post…

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. 

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 ... are you now wondering, Am I Next?

NO LOVE AT U.S. BANK (UPDATED)

FEBRUARY 4, 2020 — 62 LAYOFFS IN RETAIL LOCKBOX UNIT IN MILWAUKEE, WISCONSIN

The bank has announced the discontinuance of its lockbox services and will be disbanding the unit with 62 layoffs in Milwaukee.

According to a company spokesperson, “We are focused on creating value for those who rely on us, and we recognize that our industry is transforming as new payment channels emerge. With these changing dynamics, we announced early last year that we would be discontinuing our retail lockbox service and processing, and investing instead in digital payment solutions.”

OCTOBER 23, 2019 — U.S. BANK TO UNDERGO MAJOR RESTRUCTURING WITH CLOSURES, LAYOFFS, AND OUTSOURCING

According to a company spokesperson, the bank is reacting to increased digitalization of the customer interaction and is planning a major reduction in force.

The company has not announced a specific number of employees to be laid off, but informed individuals have put the number in the low thousands and include assistant managers, teller coordinators, including administrative and support personnel.

According to the Bank’s CEO, Andy Cecere, “We are telling some employees that we have made the difficult decision to eliminate their jobs because customer behaviors have changed.

“Many of the bankers affected by this have been here for a long time, and they have all contributed to our success. They are valued, and we appreciate everything they have done. However, we have to think about what is right for the long-term health of our company, and for all of our employees and customers. At the same time, however, we will be creating new jobs and making a significant investment in training for our consumer bank to better support customer needs now and in the future.”

IT support of branch activities will be outsourced to a third-party technology firm. The bank continues to shrink its branch footprint to compensate for declining walk-in traffic.

UPDATE: OCTOBER 24, 2018 — U.S. BANK ANNOUNCES 700 ADDITIONAL LAYOFFS

A spokesperson for U.S. Bank has announced that “changing conditions” are responsible for the layoff of 700 bank employees. The spokesperson refused to identify which employees would be laid off, their location, or their positions. However, they added that these layoffs are in addition to the 260 previous layoffs in Ohio.

Employees of the bank suggested that the layoff may have impacted 1,000 employees rather than just 700.

Original post…

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. 

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?