Truist Financial

History

2024: Employee layoffs amid losses

On January 18, 2024, Truist Financial, one of the 10 largest American banks, announced a reorganization in which the number of personnel will be reduced by about 16%. This is due to large losses and the desire of the organization to improve its financial situation.

At the end of fiscal 2023, Truist Financial received net losses of $1.45 billion. For comparison: a year earlier, net profit was demonstrated at $5.93 billion. At the same time, revenue on an annualized basis increased from $23.18 billion to $23.61 billion. The losses are primarily due to a one-time write-off of goodwill in the amount of $6.1 billion due to "the continuing impact of higher interest rates, as well as a steady decline in the value of shares in the banking sector."

Truist Financial announces reorganization

As part of the restructuring, Truist Financial is cutting roughly 1,000 employees. After the layoffs, the staff will be 50,905 people. Thus, the bank reduces the number of personnel by about 2%. Reduced workers will receive eligible compensation and other payments. The bank does not report which divisions will be affected by the restructuring as of January 18, 2024.

Truist Financial CEO Bill Rogers notes that the reorganization aims to transform the bank into a simpler, more efficient and profitable structure. Truist Financial, formed in 2020 from the merger of SunTrust Robinson Humphrey and BB&T Capital Markets, expects to lower costs and improve financial performance. As of early January 2024, Truist Financial has a market capitalization of approximately $49.97 billion. For comparison: in 2020, this indicator was estimated at $64.61 billion, and in 2021 - at $77.74 billion.^[1]

Notes