Truist surpasses goal of closing 800 branches. Workforce down 14% since bank debuted. – McDowell News

Written by Amanda

Truist Financial Corp. declared Tuesday that the integration of BB&T Corp. and SunTrust Banks Inc. “is substantially completed,” including projected reductions in branches and ATMs.

However, that’s not necessarily the case in workforce eliminations as it plans to consolidate its six data centers to three by year’s end.

Truist debuted on Dec. 7, 2019, the result of BB&T’s $33.5 billion purchase of SunTrust.

The bank said in January it would close about 400 branches during the first quarter to meet its overall goal of closing 800 branches. Those 800 were expected to close between the end of 2019 and March 31, 2022. The bank actually reached 822 branch closings in that time.

On Tuesday, Truist reported having 2,112 branches as of March 31.

That’s down from 2,517 on Dec. 31 and 2,556 on March 31, 2021. Truist had more than 2,900 branches at the end of 2019.

The bank still has 13 branches in Forsyth County.

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ATMs were reduced to 3,214 as of March 31, compared with 3,670 on Dec. 31 and 3,807 on March 31, 2021.

In terms of workforce, it eliminated 479 full-time equivalent jobs during the first quarter, leaving 51,169 full-time positions.

The workforce is down by 2,038 year over year, or 3.8%. 

Since December 2019, the workforce is down 14%, or from 59,300 to 51,169.

Kelly King retired at Truist’s chief executive on Sept. 12, 2021, and as its chairman in March.

King said in July that about 2,000 full-time employees agreed in June to a voluntary retirement or separation from the bank.

“These were totally voluntary decisions on their part,” King said. “This program does help us to reduce costs and create capacity to invest in needed services for our clients.”

Bill Rogers, who succeeded King as chief executive and chairman, told analysts in October that about half of those 2,000 full-time employees had left the company by Sept. 30.

On Tuesday, chief financial officer Daryl Bible said that voluntary retirement and separations would continue through the third quarter.

Cantey Alexander, Truist’s regional president for the Triad, said in December 2019 the bank had about 3,800 employees in the region, including operations in Forsyth County and the Triad Corporate Center complex in Greensboro near Piedmont Triad International Airport.

The bank has not provided a Triad workforce update since.

Truist said remaining steps involve “teller platform migration” through the end of the year, and completing the shift from six to three data centers.

More integration updates

Truist has said that “to create greater capacity for investment in the experience and success of Truist clients, we’re building a more efficient, high-performance company through efforts, such as reducing real estate use, third-party spend, branch redundancy and workforce in some areas.”

Bible and Rogers said Truist remains on pace to meet its goal of $1.6 billion in cost-savings by the end of 2022.

Truist said in January it had achieved a projected $1.04 billion in annual cost savings as of Dec. 31, 2021.

Bible said much of the remaining $500 million — such as additional technology savings — would be achieved in the second half of fiscal 2022.

“We’re on track with the cost savings, ahead in most of the categories we want to be in,” Rogers said.

“Now, we have a couple of remaining big chunky ones. You close data centers, you get cost savings. We feel really good about where we are in that trajectory.”

In its first-quarter earnings presentation, Truist said it has achieved its goal of eliminating 5 million square feet of non-branch facility space, including 400,000 square feet during the first quarter.

It had exceeded its goal of reducing spending with third-party groups by 10% by reaching 11.9% in saving during the first quarter.

Source: mcdowellnews.com

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