Wells Fargo plans 1,000 U.S. job cuts

By Imani Moise (Reuters) - Wells Fargo & Co said on Thursday it notified about 1,000 employees in its Consumer Lending and Payments, Virtual Solutions and Innovations groups of plans to eliminate their positions. The layoffs are consistent with the bank's previously announced plans to reduce headcount by up to 10 percent by 2020, spokesman Tom Goyda said.

Reuters November 16, 2018 03:05:13 IST
Wells Fargo plans 1,000 U.S. job cuts

Wells Fargo plans 1000 US job cuts

By Imani Moise

(Reuters) - Wells Fargo & Co said on Thursday it notified about 1,000 employees in its Consumer Lending and Payments, Virtual Solutions and Innovations groups of plans to eliminate their positions.

The layoffs are consistent with the bank's previously announced plans to reduce headcount by up to 10 percent by 2020, spokesman Tom Goyda said. Wells Fargo, the No. 4 U.S. bank by assets, had about 262,000 employees as of Sept. 30.

Most of those affected received 60-day notices, but some received pre-notices, meaning they will get a 60-day notice sometime next year.

About 900 of the layoffs are in the bank's home lending unit, reflecting declines in application volume and the number of customers in default. The cuts will be spread across the United States but are concentrated in Des Moines, Iowa, which is expected to have about 400 reductions, and Fort Mill, South Carolina, which is expected to have 111 cuts.

"We are committed to retaining as many team members as possible and will do everything we can to help them identify other opportunities within Wells Fargo," Goyda said.

Earlier this year, the company announced plans to reduce its overall headcount by up to 26,000 over the next three years to reflect changing consumer preferences as more customers use self-service technology to do their banking.

The cuts are intended to help the bank reach its goal of reducing costs by $4 billion by 2020 as it tries to increase profit and recover from a series of scandals while operating under the Federal Reserve’s asset cap.

Over the summer, the bank laid off 600 employees in its mortgage division which has faced challenges due to a slowdown in refinancing demand.

Aside from headcount reductions, Wells Fargo has pledged to lower costs and become more efficient by reducing its branch count by about 800 by 2020 and by selling noncore businesses.

(Reporting by Imani Moise in New York; Editing by Bernadette Baum and Matthew Lewis)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities
World

Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities

Reports suggest that they captured President Alpha Conde and dissolved the government, bust the ground situation remains unclear

Cryptocurrency prices tumble and exchange trading falters as snags crop up
News & Analysis

Cryptocurrency prices tumble and exchange trading falters as snags crop up

NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.

Ford poaches Apple's car project chief Doug Field
News & Analysis

Ford poaches Apple's car project chief Doug Field

By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.