Dallas-based lender Comerica has unveiled plans to shed about 9% of its workforce and shut down 40 branches in an effort to cut costs and bolster profitability.
The bank, which comprised nearly 8,792 full-time employees as of 30 June 2016, did not disclose precise details on the job cuts and the markets to be affected.
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The bank has also unveiled plans to streamline operational processes, reduce technology system applications, and make selective outsourcing of technology functions.
Comerica said that it expects to save $160m by the end of 2018 through these initiatives.
Comerica chairman and CEO Ralph Babb, Jr. said: “We are confident the initiative will improve profitability, despite current market conditions and a tough banking environment.”
The move comes after the bank posted a 23% fall in profit for the second quarter of 2016 to $103m, compared to $134m a year ago. The fall was driven by a $53m restructuring charge.
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