May 21, 2024

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Ally Financial will cut 5% of jobs. Charlotte impacts unclear

2 min read
Ally Financial will cut 5% of jobs. Charlotte impacts unclear

Ally Financial, a banking company with a large workforce in Charlotte, announced Monday it’s planning to cut about 5% of its employees.

The Detroit-based business operates its Ally corporate center in Charlotte at 601 S. Tryon St. — inside a 26-story office building between uptown and South End in Charlotte. Ally has 11,700 employees, including 2,700 in Charlotte.

The cuts were first reported by national outlets Monday.

It’s unclear how many positions will be cut in Charlotte. Peter Gilchrist, a spokesman for Ally, said impacts were not limited to any specific department or location.

Courtesy of Crescent Communities

“Despite a challenging macroenvironment, we remain relentlessly focused on serving our customers and all stakeholders by making the tough, yet necessary, decisions to guide our business into the future,” Gilchrist stated. “After taking steps over the past year to pause hiring and manage staffing expenses through natural attrition, we have made the difficult choice to selectively reduce our workforce.”

Gilchrist said Ally is committed to supporting affected employees and will be offering a severance package and career support. The company will continue to hire employees in critical areas of the business, he said. Employees impacted will be able to apply for openings.

“We remain confident in our long-term strategy, with a strong balance sheet and nimble, scalable businesses that are poised for future growth,” Gilchrist added.

Ally provides a variety of services such as banking, investing, home loans and auto finance. Ally has been in the Charlotte market since 2009.

Banking cuts continue

Ally’s cuts add to multiple banks with a Charlotte presence that are doing the same because of economic conditions.

In September, San Francisco-based Wells Fargo said additional layoffs and a decrease in office space are expected for the company. The State reported Monday that Wells Fargo will lay off up to 525 employees in Columbia and close an office space by June 30, 2024.

Wells Fargo’s largest employment hub is in Charlotte with 27,000 workers in the city.

Truist is also planning $750 million in layoffs and other cuts to reduce expenses.

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Chase Jordan is a business reporter for The Charlotte Observer, and has nearly a decade of experience covering news in North Carolina. Prior to joining the Observer, he was a growth and development reporter for the Wilmington StarNews. The Kansas City native is a graduate of Bethune-Cookman University.

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