US Bank Layoffs: Why the Bank is Cutting Thousands of Jobs and What It Means for the Employees and the Industry

As part of its cost-cutting and restructuring strategy, US Bank, the fifth-largest U.S. bank by assets, is firing thousands of workers across all of its branches and headquarters. The low interest rate environment, the downturn in the mortgage industry, and the growing competition from fintech and digital firms have all put pressure on the bank. In this blog article, we shall discuss what US bank layoffs are, how and when they occur, their effects and ramifications, and coping mechanisms.

What are US Bank layoffs?

Layoffs at US Bank refer to the workforce reductions that the bank has been executing or declaring since the start of 2023, impacting different departments and sites within the organization. As per the company’s filings and media sources, US Bank has eliminated or intends to eliminate over 20,000 positions this year, representing almost 10% of its whole staff. In an effort to streamline operations and save costs, the bank has mostly targeted layoffs in the retail banking, mortgage, and corporate support sectors.

us bank layoffs

When and how did US Bank layoffs happen?

US Bank layoffs have been happening gradually and quietly throughout the year, without any official announcement or confirmation from the bank. The bank has been using various methods to reduce its headcount, such as attrition, voluntary buyouts, early retirement, and involuntary terminations. Some of the notable events and dates of US Bank layoffs are:

US Bank declared in January 2023 that it was making a deliberate move out of the mortgage industry, leading to the closure of 50 mortgage centres and the loss of 260 jobs.
In March 2023, US Bank made voluntary buyout offers to around 5,000 workers, mostly in corporate assistance and retail banking. This move was made as part of the bank’s plan to close branches and increase investments in digital capabilities.
June 2023: As a result of declining demand for house loans and refinancing owing to rising interest rates and a shortage of available homes, US Bank laid off over 1,000 employees, the bulk of whom were in the mortgage business.
August 2023: As part of its ongoing efforts to maximise staffing and reorganise its branch network, US Bank laid off over 2,000 workers, the bulk of whom worked in corporate support and retail banking.
In October 2023, US Bank said that it would eliminate an additional 12,000 positions by the end of 2024. The bank’s objective is to lower yearly costs by $1.5 billion and raise its efficiency ratio.

What are the impacts and implications of US Bank layoffs?

US Bank layoffs have significant impacts and implications for the employees, the customers, the shareholders, and the industry. Some of the possible effects are:

Employees: The layoffs at US Bank have left workers feeling unsure, anxious, and stressed, especially those who have been impacted by the job losses or worry they will be. The workers can have trouble relocating, settling into new positions, or handling the loss of pay and benefits. In addition, there may be a drop in the workers’ motivation, morale, and output, as well as an increase in absenteeism, turnover, and disputes.
Customers: US Bank layoffs may have an impact on the calibre and accessibility of the goods and services the bank provides, particularly in the areas of mortgage and retail banking. As the bank decreases its branch network, outsources some activities, and relies more on digital channels, clients may experience longer wait times, restricted access, poorer satisfaction, and higher costs. Additionally, clients may stop believing in and being loyal to the bank, choosing instead to choose other services or suppliers.
Regarding the shareholders: Depending on the short- and long-term results of the bank’s strategy, layoffs at US banks may have differing implications for shareholders. One way the bank’s reduced expenses, streamlined processes, and investments in new sectors might benefit the shareholders is if it increase profitability, efficiency, and competitiveness. On the flip side, when the bank loses clients, staff members, and possibilities, the shareholders can suffer from lower revenue, market share, and reputation.
For the sector:  Layoffs at US banks might be a reflection of and a factor in the trends and difficulties that the banking sector is now dealing with, including the low interest rate environment, the downturn in the mortgage market, and the growing competition from fintech and digital firms. The bank’s layoffs may prompt or hasten such actions by other banks, causing a knock-on impact throughout the sector. The bank’s layoffs may potentially affect the housing, job, and financial stability markets as well as the larger economy and society.

How to cope with US bank layoffs?

US Bank layoffs are a difficult and stressful situation for the employees, the customers, the shareholders, and the industry. However, there are some ways to cope with the situation and mitigate the negative effects. Some of the possible strategies are:

For the workers: Workers who have experienced layoffs or who anticipate being let go should look for both professional and private assistance, including career guidance, financial preparation, legal counsel, and emotional support. Along with updating their resumes, networking with connections, and looking into new prospects both inside and outside the bank, the personnel should do these things. The staff members who have been retained or moved around need to stay in touch with their supervisors, coworkers, and clients. They also need to adjust to the new difficulties and changes in their duties and responsibilities.
Customers who have been impacted or disappointed by the bank’s layoffs should get in touch with customer care to voice their concerns and ask for remedies or other options. Before deciding whether to stay or move, consumers should evaluate their accounts, goods, and services, weigh their alternatives against those of rivals, and make any necessary adjustments. In addition, clients should safeguard their financial and personal data, keep an eye on their transactions and statements, and report any problems or inaccuracies.
For the shareholders: Those who own stock in the bank or are considering it should monitor its performance, outlook, and strategy. They should also weigh the benefits and drawbacks of the bank’s layoffs. Along with balancing their short- and long-term goals, diversifying their portfolio, and deciding whether to purchase, sell, or keep on to bank shares are other important tasks for the shareholders. In addition, the shareholders ought to interact with the bank’s board, management, and other stakeholders, expressing their views and hopes.
Regarding the industry:  Those involved in it who have been affected by the bank’s layoffs ought to assess their own position, advantages and disadvantages, and modify their operations, strategy, and culture accordingly. They ought to keep an eye on consumer preferences, competitive pressures, and market trends, as well as innovate and set themselves apart from the competition with their goods and services. Along with adhering to rules and regulations and working for the public good, industry participants should also cooperate with one another.


US Bank, the fifth-largest U.S. bank by assets, is laying off thousands of employees across its branches and offices, as part of its cost-cutting and restructuring plan. The bank has been facing pressure from the low-interest-rate environment, the slowdown in the mortgage business, and the increased competition from fintech and digital players.


  1. Why is U.S. Bank laying off employees? A combination of economic factors, restructuring, and specific market declines led to the cuts.
  2. Which positions were impacted? Reports suggest cuts across mortgage, auto finance, and technology, but details are limited.
  3. Will there be more layoffs? U.S. Bank hasn’t confirmed further cuts, but economic uncertainty necessitates staying informed.
  4. Should I be worried about my job? If you’re concerned, talk to your manager or HR representative for more information.
  5. What are my options if I’m affected? Explore internal opportunities, update your resume, and research growth areas within the financial sector.

Zayan Ali

Zayan Ali is an experienced blog writer with 3 years of expertise, known for captivating readers in diverse niches and being a sought-after online content creator.

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