With 96% of the bank’s roughly 48,000 workers working remotely, “we’ll maintain that and probably encourage some level of our employees, whether it’s rotational or not, to consider this,” Chief Executive Officer
Major companies around the world are retooling office space for fewer workers and considering more telecommuting. Twitter
Gibbons said his bank is also planning to reduce the amount of disaster-recovery space it maintains to become “more efficient.”
BNY Mellon has been looking for ways to keep expenses in check, in part by automating operations to reduce the number of employees it needs. But a pledge in April to refrain from additional layoffs this year has put additional pressure on the bank to find savings. Reducing real estate such as offices and disaster-recovery sites could help with that.
Gibbons said the bank is also being “disciplined around hiring” and “prioritizing out anything that’s not key right now,” even as it continues work on initiatives aimed at improving earnings productivity.
Separately, BNY reiterated guidance that net interest income will probably be down 2% to 5% in the second quarter from the previous three months as falling interest rates reduce the benefit of higher-than-expected deposit levels.
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