US Bank plans thousands of job cuts in staff restructure
US Bancorp, the parent company of US Bank, is planning to cut thousands of branch-based jobs due to changes in customer preferences, according to Bloomberg sources.
In a staff memo US Bancorp chief executive officer Andy Cecere said that the firm was making such a “difficult decision” to cut around just under 2% of its workforce because “customer behaviours have changed”.
None of the bank’s 3,700 branches will be shut down, but tellers and assistant branch managers will be reduced. US Bank has around 74,000 employees, meaning the cuts would affect a maximum of 1,480 people.
According to the memo, US Bank will also be introducing more customer-centric positions and launching a training programme for existing employees to widen their skillsets.
A spokeswoman told Bloomberg that US Bank would be hiring client-relationship consultants and business-banking development consultants among other new roles to work in the branches.
US Bancorp turned in a record net revenue of $5.9 billion in Q3 2019, alongside a net income of $1.9 billion. Its net revenue grew year-on-year by 3.9%.
“Despite a challenging interest rate environment, we posted record revenue, net income and earnings per share in the third quarter, delivered industry leading returns on assets and equity, and grew our book value by over 10% from a year earlier,” wrote CEO Cecere of the results earlier this week.
“I’d like to thank our employees for their hard work and dedication to delivering value to each of our constituents.”