Just a day after Bank of America announced that it had cut 2,600 jobs during the second quarter of 2016, Comerica has announced plans to cut 790 jobs.
The cuts are part of a grander plan on Comerica’s behalf called “GEAR Up”, which is expected to “drive $230 million in additional pretax income” by the end of 2018.
Also as part of the plan, it is expected that 40 of Comerica’s 476 branches will close. GEAR Up anticipates full implementation by the end of the year.
In June 2016, Comerica had 8,279 employees, meaning that the planned cuts will affect a little less than 10 percent of Comerica’s workforce.
While the decision was said to be “difficult, particularly for our employees”, Comerica’s CEO Ralph Babb cited “the continuing low [interest] rate environment” to have forced the bank’s hand.
The plan was largely developed to satisfy deeply unsatisfied stockholders, who grilled Comerica’s leaders during this past April’s shareholder meeting over the bank’s lackluster financials.
Over the past year, Comerica’s earnings have fallen from $132 million to $59 million.
Babb also emphasized that GEAR Up is aimed at getting rid of some corporate hierarchy, while consolidating operations in more successful branches and regions.
Comerica is based out of Dallas, and most of its operations are within the states of Texas, California, and Michigan.