Comerica, a Dallas-based financial services company, has laid off 250 employees and plans to close 26 branches as part of a broader strategy to reduce costs and manage expense growth. These actions, disclosed during the company’s fourth-quarter earnings call on January 19, are aimed at streamlining operations and improving profitability.
Comerica, which has a workforce of around 7,700 employees, eliminated more than 3% of its workforce in this round of layoffs. The company incurred $25 million in severance charges as part of the process. Among the layoffs, 28 employees in the Dallas-Fort Worth area were affected. Despite the cuts, Comerica slightly increased its workforce by the end of 2023, reaching 7,701 employees.
The company plans to close branches in states including Michigan, Texas, California, and Arizona, but did not specify which locations will be affected. However, Comerica emphasized that branches in the Dallas-Fort Worth area will not be impacted. The bank currently operates 408 branches, including 55 in DFW.
Comerica’s Chief Financial Officer, Jim Herzog, explained that the layoffs and branch closures are part of a plan to “recalibrate expenses” and enhance efficiency. He stated, “Through this process, we are prioritizing customers and positioning the business for future success.” The cost-cutting measures are expected to reduce expenses by $45 million in 2024 and $55 million in 2025.
Despite the challenging environment, Comerica plans to continue investing in growth areas such as treasury management, payments, capital markets, and wealth management. The bank also aims to expand its presence in new markets, particularly in the Southeast and Colorado.
CEO Curt Farmer acknowledged that Comerica, like other major financial institutions, is dealing with higher expenses and weaker earnings due to rising interest rates. He indicated that the company is taking a long-term view, balancing short-term challenges with future revenue-driving initiatives.
Comerica reported a net income of $33 million in the fourth quarter, with a full-year profit of $881 million, a 23% decline compared to 2022. The bank ended the year with $85.8 billion in assets, $66.8 billion in deposits, and $52.1 billion in loans.
