Texas Capital Bancshares has made sweeping cuts to its workforce amid a volatile time for the banking industry.
(Bloomberg) — Texas Capital Bancshares has made sweeping cuts to its workforce amid a volatile time for the banking industry.
The Dallas-based bank, which has slumped 17% this year, laid off the staff last week, according to a spokesperson who declined to specify the number of jobs eliminated.
The Dallas Business Journal reported earlier that it cut as much as 10% of its workforce. It had 2,198 employees as of Dec. 31, its annual report shows.
“Texas Capital continues to execute the transformation strategy set in place during September 2021, and has created disciplines to consistently deliver operating efficiencies through the investment in better technology, products, processes, and client experience,” the spokesperson said in an email.
Texas Capital was thrust into the limelight in 2021 after Bloomberg reported that Archegos Capital Management had built an undisclosed 20% stake in the firm. The stake in Bill Hwang’s family office had propped up the bank’s share price, which tumbled after Archegos went under.
Over the past couple years, Texas Capital has focused on expanding its wealth management and treasury services. It also launched an investment banking arm in a shift away from just strictly offering loans.
The firm named former Goldman Sachs Group Inc Managing Director David Youngberg Jr. as its chief credit officer last week.
It also added exchange-traded fund veteran Ed Rosenberg this year and plans to offer an ETF that would give investors exposure to companies based in Texas.
Texas Capital reports first-quarter earnings Thursday. Its shares rose 2% to $50 at 11:22 a.m. in New York.
(Updates with share price in last paragraph.)
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