Ally Financial confirms hundreds of layoffs companywide, including in Charlotte

Ally Financial is cutting hundreds of jobs companywide, including in Charlotte.

The digital-only bank’s layoffs will affect less than 5% of its workforce, bank spokesman Peter Gilchrist confirmed Tuesday night in a statement to The Charlotte Observer. Ally has 11,000 employees, including about 2,400 in Charlotte.

“We announced today 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,” Gilchrist said.

To “right-size” the company, Gilchrist said, Ally reduced its workforce in some areas but is hiring in other areas of our business. The job cuts are not specific to certain departments or locations, he added.

Gilchrist declined to say how many jobs will be eliminated in Charlotte, or the total companywide. Employees will be offered severance packages and may apply for other openings at Ally.

Ally has been in the Charlotte market since 2009. It provides services such as auto finance, banking, home loans and investing. The company’s corporate center is inside a 26-story office building at 601 S. Tryon St.

Previous Ally Financial job cuts

This is the second round of job cuts Ally has made in just over 15 months.

In October 2023, Ally Financial cited economic challenges and cut 5% of jobs companywide in various departments to save the company $80 million. The same year, CEO Jeff Brown resigned to become president of Charlotte-based Hendrick Automotive Group.

At that time, Ally had 11,700 employees, including 2,700 in Charlotte.

In April 2024, Michael Rhodes became Ally Financial’s next chief executive officer.

The company will release its fourth-quarter earnings and full-year 2024 financial reports Jan. 22.

This story was originally published January 8, 2025 at 5:00 AM with the headline "Ally Financial confirms hundreds of layoffs companywide, including in Charlotte."