Truist Financial in Charlotte, N.C., will look to reduce annual expenses by $750 million by the end of next year as part of a plan that will include “significant” job cuts.
The $555 billion-asset company disclosed in a conference presentation that it expects to limit year-over-year expense growth to 1% in 2024, compared to 7% this year.
“Now is the time to pivot, and pivot quickly,” Bill Rogers, Truist’s chairman, president and CEO, said during a presentation at the Barclays Global Financial Services Conference.
Truist estimated that $300 million of the savings will come from “reductions in force,” including consolidating functions, geographic simplification and select business restructuring.
Another $250 million will be tied to organizational alignment and simplification, including consolidating businesses and branches. The final $200 million in planned cuts will involve rationalizing technology spending.
Truist has lowered its 2023 revenue projections several times this year. It originally forecast 9% growth in January, before lowering it to 5% to 7% in April. The company cut its target to 3% in May before reducing it again to 1% to 2% in July.