Driving the news: Ally Financial $ALLY ( ▲ 1.65% ) is cutting approximately 2% of its roughly 10,000-person workforce—mostly at the manager level and above, according to an email from CEO Michael Rhodes to employees obtained by CDG News.
For context: Rhodes framed the cuts as organizational restructuring to create "clearer structures with increased managerial spans" and consolidate activities.
Impacted employees will receive full salary and benefits through January 2, 2026, and other assistance including career counseling and job placement.
This marks Ally's second round of layoffs in 2025 after cutting less than 5% of its workforce in January when the company had around 11,000 employees.
From the email:
“As hard as the impacts of today’s announcement are, these changes are intentionally designed to make it easier to do business and free up resources. Unlocking that capacity will fuel growth and innovation to the benefit of all our stakeholders. Our momentum is already strong, and building upon that, as we capitalize on the opportunities ahead of us, will further elevate Ally’s trajectory.”
What we’re watching: Two rounds of layoffs in one year signals Ally is taking a more defensive posture, but restructuring during uncertain economic cycles is not necessarily a red flag. Several other major auto lenders and banks have announced similar efforts, reflecting broader economic headwinds rather than problems unique to Ally.
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