Truist Cuts 800 Jobs After Merger, Pays COVID-19 Bonuses
Charlotte-based Truist Financial Corp. cut 800 jobs across the company during the first three months of the year. That came as the sixth largest U.S. bank started cutting costs following last year’s merger of SunTrust and BB&T.
Truist promised $1.6 billion in cost cutting after the merger that created the company, and more cost cutting is expected.
Despite the 800 job cuts, the company's expenses rose during the first three months of the year, in part because of merger costs and expenses related to the coronavirus pandemic.
Truist has boosted reserves by $582 million to $893 million to cover expected loan losses related to the economic slowdown.
The company also paid $1,200 bonuses in March to all employees who make less than $100,000 a year – 78% of the company's workforce. Truist also announced other initiatives including extra paid time off, work space flexibility, family care benefits and a special "onsite" pay boost of $6.25 an hour or $50 a day for those required to work in offices
Truist turned a profit of $986 million in the first quarter, or 73 cents a share, which was down 25% from the combined companies' earnings a year ago.
Excluding unusual expenses, the company earned $1.2 billion, or 87 cents a share, which beat Wall Street analysts' expectations.
Truist has about 2,400 employees in Charlotte now. In March, the company paid $455.5 million for the Hearst Tower in uptown Charlotte, now renamed Truist Tower.
Truist shares gained more than 4% Monday morning.
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