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Truist to cut hundreds of jobs and rein in technology spend

Top ten US commercial bank Truist is to cut hundreds of jobs and rationalise technology spend in an effort to slash costs by $750 million.

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Truist to cut hundreds of jobs and rein in technology spend

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The bank has been under pressure to reduce expenses and adjust to a new economic climate categorised by rampant inflation and rising interest rates.

The job cuts will shave $300 million from the firm's expense account, while an upgrade to the bank's technology stack is expected to save the company an additional $200 million over the next 12 to 18 months.

A further $250 million will be saved by a restructuring effort which will see the consolidation of certain business lines and sweeping cuts to its branch network.

The bank, which is expected to post a seven percent increase in expenses this year, aims to bring down expense growth to just one percent for 2024.

While its stock lifted slightly on the presentation to analysts, market commentators have expressed reservations about whether the bank's actions will be sufficiently brutal to arrest a decline that has seen its share price drop by 30% this year.

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