More cuts coming this week.
I don't understand, why do people think layoffs will continue? 500 people already got their notifications last week - mortgage and HELOC among others - so who else do you think needs to go? US Bank wouldn't have made the acquisition if they didn't want to do something with it. Getting rid of more employees doesn't play into that.
NY/NJ are MUFG UB back office and IT employees start looking now if you have not been laid off YET.
UB employees are paid significantly more than their USB counterparts and have far more PTO and perks. USB has no interest in keeping more costly employees around. They’ll try to push them out first, then cut the rest. Maybe a few retail employees will remain to fill staffing at current USB locations.
The USB banking model from 1980 doesn't work today. Any reason to have a branch bank? Haven't been in a branch in years. Once the boomers are gone, so are expensive branches and USB. Mortgages, car loans, etc are all done online. The golden agers running USB are in it for themselves and their golden parachutes.
The entire business case for this acquisition was based on revenue and efficiencies. Those efficiencies are driven by overlapping staff/roles, duplicative software licenses and similar, closing of physical locations, and other expenses that can be relatively easily cut.
Plus this is a business in decline overall with the move to digital banking, etc.
Please be prepared, everyone: polish up your resume/LinkedIn, network a bit, etc.
Not only is the mortgage business dead, but has anyone looked at the auto repo market ? Lots of upside down borrowers are letting cars go back. And, dealers can't sell new cars with loan rates at the current levels. This is a disaster for the banks two fold.
Does everyone understand what is happening to the mortgage industry right now? Interest rates are close to double that they were just a few years ago. This is an industry wide lack of demand. Highly unlikely a U.S. Bank specific event.
Are you new to merger? The synergy is cost cutting, meaning gettting rid.
Lol. Good one. You're probably new to USB. You'll learn that layoffs are a common occurrence.
Because this is how mergers work. You buy out competition, you dump the work on existing employees and you send the others to sl------r. It drives revenue numbers.