Ally Financial says it will save $80 million when slashing 5% of its jobs companywide
Ally Financial, which has thousands of employees in Charlotte and recently disclosed it was slashing 5% of jobs companywide, now says that move will save the company $80 million.
The savings were cited this week during the Detroit-based company’s call with analysts over the release of its third-quarter earnings report.
Ally paid $30 million for a restructuring charge to reduce the workforce, said CEO Jeff Brown, who recently announced his resignation. “We expect the actions we’ve taken will drive $80 million in annualized savings heading into next year as we manage toward meeting our expense target,” Brown said during the call.
Peter Gilchrist, a bank spokesman, said the savings are tied to Ally’s plan to reduce personnel by about 5% because of economic challenges. The Impact of that move is not limited to certain departments or locations.
Ally has 11,700 workers, including 2,700 in Charlotte. It’s not known how many employees in Charlotte will lose their jobs when the cuts hit.
Ally has been in the Charlotte market since 2009. It provides services such as auto finance, banking, home loans and investing. The company’s corporate center is inside a 26-story office building between uptown and South End.
Other banks shedding jobs too
Other banks with a major presence in Charlotte are also cutting positions because of financial concerns.
San Francisco-based Wells Fargo reported additional layoffs and a decrease in office space are expected for the company in September. Its largest employment hub is in Charlotte with 27,000 people.
Truist, which is headquartered in Charlotte, also announced $750 million in cost cuts and major layoffs.
Brown says goodbye to Ally
During the earnings presentation, Brown also talked about his last few months with Ally after recently announcing his resignation as CEO. He served in the role for eight years.
Brown said he has confidence in Ally’s strategic operations, financial positioning and its leadership for the transition period.
“Ally has delivered a remarkable transformation, built an incredibly strong foundation and is positioned to thrive,” Brown said. “I’m honored to have led our company.”
His next role will be with Charlotte-based Hendrick Automotive Group as president. The company has more than 10,000 employees, with 3,300 of them in Charlotte.
Brown said that Ally’s financial outlook had no impact on his decision to resign. He and Hendrick Automotive CEO and chairman Rick Hendrick have known each other for years.
“This was really a dream opportunity for me to go work with a man, a family, a company that I have got to know for a number of years, that I deeply love and admire,” Brown said.
This story was originally published October 20, 2023 at 2:24 PM.
