Salt Lake City-based Zions Bancorp NA disclosed that it will reduce its workforce to improve its operating efficiency.
On the bank's third-quarter earnings call, CEO Harris Simmons announced that Zions Bancorp will let go of 5% of its employees. This will cause a temporary increase of about $25 million in noninterest expenses during the fourth quarter due to severance packages and other similar efficiency-related charges, Simmons said.
COO and President Scott McLean said the bank will see the benefits from the workforce reduction throughout 2020. While the executives would not give an estimate of cost savings, Simmons said taking the 5% reduction and applying it to the bank's salary and benefits number could give a "rough approximation."
McLean said the reduction will include about 30% customer-facing employees and 70% other enterprise and back-office personnel.