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Ally (ALLY) Streamlines Business, To Cut Less Than 5% Jobs
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In an effort to streamline business operations, Ally Financial Inc. (ALLY - Free Report) has started trimming its workforce, a move that is expected to impact less than 5% of the company’s overall headcount.
Spokesperson Peter Gilchrist has said in an emailed statement that the workforce reduction will occur across divisions and is not restricted to a single line of business.
Gilchrist stated, “Despite a challenging macro environment, we remain relentlessly focused on serving our customers and all stakeholders by making the tough, yet necessary, decisions to guide our business into the future. After taking steps over the past year to pause hiring and manage staffing expenses through natural attrition, we have made the difficult choice to selectively reduce our workforce.”
Employees losing their jobs because of the move will be allowed to apply for openings at the company.
Gilchrist added, “We remain confident in our long-term strategy, with a strong balance sheet and nimble, scalable businesses that are poised for future growth.”
So far this year, shares of ALLY have gained 4.9% compared with the industry’s growth of 4.3%.
Finance firms in the United States, especially banks, are having to navigate their way through the current tough economic environment. In order to remain profitable amid the high interest rate environment and recession fears, financial institutions are undertaking several restructuring efforts, majorly job cuts.
Last month, at an investor conference, Wells Fargo’s (WFC - Free Report) CFO, Mike Santomassimo, noted that the company was eyeing opportunities to cut down expenses by reducing its real estate footprint and headcount.
Santomassimo stated, “We continue to believe we’ve got a lot more to do to make the company as efficient as it should be.”
Since third-quarter 2020, WFC has cut almost 40,000 jobs. Santomassimo added, “We had too much real estate before Covid, and so we’ve been methodically working through that portfolio over the last few years.”
In August, Charles Schwab (SCHW - Free Report) announced a business streamlining plan as part of its cost-saving measures. The company is expected to slash jobs and close or downsize its corporate offices with an aim to achieve at least $500 million in annual cost savings.
In addition to the cost efficiencies associated with the integration of TD Ameritrade (acquired by Schwab in October 2020), the above-mentioned action is a step taken to simplify SCHW’s business to better prepare for the post-integration period.
While Schwab did not mention the count of positions that will be impacted by the move, it stated that jobs mostly in non-client-facing areas will be eliminated.
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Ally (ALLY) Streamlines Business, To Cut Less Than 5% Jobs
In an effort to streamline business operations, Ally Financial Inc. (ALLY - Free Report) has started trimming its workforce, a move that is expected to impact less than 5% of the company’s overall headcount.
Spokesperson Peter Gilchrist has said in an emailed statement that the workforce reduction will occur across divisions and is not restricted to a single line of business.
Gilchrist stated, “Despite a challenging macro environment, we remain relentlessly focused on serving our customers and all stakeholders by making the tough, yet necessary, decisions to guide our business into the future. After taking steps over the past year to pause hiring and manage staffing expenses through natural attrition, we have made the difficult choice to selectively reduce our workforce.”
Employees losing their jobs because of the move will be allowed to apply for openings at the company.
Gilchrist added, “We remain confident in our long-term strategy, with a strong balance sheet and nimble, scalable businesses that are poised for future growth.”
So far this year, shares of ALLY have gained 4.9% compared with the industry’s growth of 4.3%.
Image Source: Zacks Investment Research
Currently, ALLY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Finance firms in the United States, especially banks, are having to navigate their way through the current tough economic environment. In order to remain profitable amid the high interest rate environment and recession fears, financial institutions are undertaking several restructuring efforts, majorly job cuts.
Last month, at an investor conference, Wells Fargo’s (WFC - Free Report) CFO, Mike Santomassimo, noted that the company was eyeing opportunities to cut down expenses by reducing its real estate footprint and headcount.
Santomassimo stated, “We continue to believe we’ve got a lot more to do to make the company as efficient as it should be.”
Since third-quarter 2020, WFC has cut almost 40,000 jobs. Santomassimo added, “We had too much real estate before Covid, and so we’ve been methodically working through that portfolio over the last few years.”
In August, Charles Schwab (SCHW - Free Report) announced a business streamlining plan as part of its cost-saving measures. The company is expected to slash jobs and close or downsize its corporate offices with an aim to achieve at least $500 million in annual cost savings.
In addition to the cost efficiencies associated with the integration of TD Ameritrade (acquired by Schwab in October 2020), the above-mentioned action is a step taken to simplify SCHW’s business to better prepare for the post-integration period.
While Schwab did not mention the count of positions that will be impacted by the move, it stated that jobs mostly in non-client-facing areas will be eliminated.