With its name emblazoned on one of the tallest buildings in downtown Dallas, you’d never guess that Comerica Bank would be a company to initiate a huge cost-cutting scheme that meant massive layoffs and closed branches, but that’s exactly what happened Jan. 22.
The workforce reduction, which equates to 250 jobs, is a significant cut for the Dallas-based corporation headquartered in the 60-story tower at 1717 Main St. According to reports the bank will close 26 branches.
In a story from the Dallas Business Journal, the staff cuts and cost-saving measures from third-party contracts were strategies employed to help get the bank’s troubled balance sheet under control. But in a story in December, Comerica CEO Curt Farmer all but announced the closures and layoffs after a troubling 2023 that saw bank failures and high mortgage interest rates.
“As mentioned on our fourth quarter 2023/full year 2023 earnings call, we are taking steps to rationalize real estate; however, none of our banking centers in Dallas/Fort Worth are impacted,” Louis Mora, vice president of media relations for Comerica told daltxrealestate.com. “Additionally, we are streamlining our management structure and eliminating approximately 250 employees across the company nationally, including 28 colleagues (primarily non-customer facing) in the Dallas/Fort Worth area. We will continue to manage expenses closely, which will ultimately create capacity for investments that will benefit our customers.”
Speaking of mortgages, just last year Comerica announced that it would cease warehouse mortgage lending, but who is to say that the bank’s balance sheet might mean further reductions in services in the commercial real estate realm? Could the bank’s mortgage services be curtailed, too?
After the layoff announcement, shares were up by more than a point for Comerica, with shares closing at $53.67 apiece.
