Ally Financial lays off “less than 5%” of total workforce
US-based online bank, lender and trading platform Ally Financial is laying off “less than 5%” of its 11,000-strong workforce, according to a company spokesperson, who says the reductions “are not specific to any one line of business or location”.
Ally Financial has approximately 11,000 employees in total
In a statement sent to FinTech Futures, Ally spokesperson Peter Gilchrist confirms that the company is also “exiting the mortgage origination business and looking at strategic alternatives for our credit card business”.
Bloomberg reported in November that Ally was preparing to part ways with its credit card business Fair Square Financial, acquired in 2021 for $750 million, and was searching for potential buyers with a financial consultant.
Ally previously sold its point of sale (POS) financing business, Ally Lending, to Connecticut-headquartered financial services firm Synchrony for an undisclosed sum early last year.
“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 says.
“As we continue to transform Ally to be more focused on our strengths and our highest-returning businesses, we announced that we will be exiting the mortgage origination business and looking at strategic alternatives for our credit card business in the first quarter of this year.
“Additionally, as we continue to right-size our company, we made the difficult decision to selectively reduce our workforce in some areas, while continuing to hire in our other areas of our business.”
Gilchrist adds that those impacted by the job cuts will be offered “a robust severance package and career out-placement support”, and will also have the opportunity to apply for other openings at the company.
“We remain confident in our long-term strategy and our ability to deliver compelling returns given the strong underlying trends in our core businesses,” Gilchrist continues.
“While decisions involving our teammates are never easy, we believe they will help us more effectively and efficiently deliver for our customers and stakeholders, and we’ll continue to be diligent in our expense management going forward.”
