Comerica has sent layoff notices to about 450 employees – nearly half of them in managerial roles – as part of a major cost-cutting initiative.
Speaking Tuesday at an investor conference in New York, Chairman and Chief Executive Ralph Babb said that the Dallas company is making rapid strides on its turnaround effort announced in July.
As part of that plan – branded as GEAR Up – the company intends to cut 9% of its roughly 8,800-member workforce over the next two years in an effort to slash costs and boost shareholder returns. The plan is expected to add $230 million in pretax revenue by the end of 2018.
"In July we started reducing management layers," Babb said. "This includes consolidating functions and responsibilities."
By the end of the year the company expects to reduce its total workforce to about 8,200, or a 7% decline from current levels.
It also expects to see immediate financial results. During the second half of 2016 it plans to record more than $15 million in cost savings as a result of the job cuts.
Notably a number of senior executives have voluntarily departed the company over the past year, including former Chief Financial Officer Karen Parkhill, who accepted a position with Medtronic in May.