The company expects to incur $5.6 million in total charges related to the layoffs, with $4.5 million hitting the books during the third quarter. Beyond the 64 direct redundancies, 16 additional roles will remain vacant as the bank halts backfilling efforts. These measures aim to generate $14 million in annualized run-rate savings.
In section Market Quotes
The Bancorp Bank Cuts 64 Jobs in Small Business Lending Pivot
The Bancorp Bank will eliminate 64 positions, roughly 9% of its total workforce, as the institution shutters new loan originations for retail and wholesale customers by year-end. This restructuring marks a sharp shift toward fintech-focused operations, leaving existing small business clients to be managed through their current service agreements.
Chief Executive Officer Damian Kozlowski framed the downsizing as a strategic move to prioritize a technology-enabled organizational structure. He noted that the changes align with the bank's fintech pipeline and growth expectations, intended to increase operational speed and long-term performance.
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