Huntington will lay off 150 to 200 workers
Huntington Bancshares in Columbus, Ohio, plans to lay off 150 to 200 workers as lower interest rates put the squeeze on income.
“While our business continues to perform well, the rapidly changing interest rate environment fundamentally impacts our revenue,” the $108 billion-asset bank said in a statement provided Monday by a spokeswoman. “In response, Huntington has taken a variety of measures to reduce expenses, which includes adjusting staffing levels.”
The Columbus Dispatch reported the cuts last week. The layoffs are expected to occur across the seven principal states where Huntington operates: Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. It is unclear whether certain states would bear more of the brunt.
Huntington had warned investors in July that its revenue growth could slow because of the Federal Reserve's rate cuts. Huntington lowered its guidance for 2019 revenue growth to between 3% and 4.5%, down from its forecast in May of between 4% to 6.5%. Analysts will be watching for any further reductions in its guidance when the bank reports third-quarter results on Thursday.
Banks have seen their interest rate margins squeezed as the Fed tries to manage the U.S. economy amid global uncertainties. The central bank has reduced its main borrowing rate twice since July and is expected to make another reduction this year. Its Federal Open Market Committee is set to meet next at the end of October.
“We understand the weight of the decision on our colleagues and will support them through a planned transition,” according to Huntington’s statement. “Huntington will continue to enhance the performance and efficiency of the company, while investing in technology to meet the needs and desires of our customers.”
The company announced last week that it had hired Zachary Wasserman, a top executive at Visa, as chief financial officer.