Wells Fargo Cuts More Than 700 Jobs in Commercial Banking

(Bloomberg) - Wells Fargo & Co. cut more than 700 commercial banking jobs as the downsizing could ultimately result in tens of thousands, according to experts.
The layoffs related to positions within the division, people said, asking not to be identified to discuss details of internal decisions. The unit provides a variety of services to businesses, typically with annual sales in excess of $ 5 million. Katie Ellis, a company spokeswoman, confirmed that at least some reductions have been made.
"We are at the beginning of a multi-year effort to build a stronger and more efficient company for our customers, employees, communities and shareholders," Ellis said in a statement. "As part of this work, we will have an impact on nearly all of our functions and businesses, including downsizing, including commercial banking, where we started evictions."
Wells Fargo, the largest employer in the U.S. banking industry, became the nation's first major lender to resume downsizing this year after a number of top companies announced they would provide stability to workers during the Covid-19 pandemic Offer.
Companies such as Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. have made targeted cuts since then. Brian Moynihan, chief executive officer of Bank of America Corp., said last week that he is sticking to the bank's 2020 release pledges.
According to Bloomberg, more than 30 banks worldwide are behind the planned downsizing of around 68,000. Much of this is being driven by HSBC Holdings Plc, which announced in February that it would cut its workforce by 35,000 to cut the cost of sub-par units in the US and Europe by $ 4.5 billion.
This week, concerns heightened that more jobs could be cut across the U.S. economy after President Donald Trump halted negotiations on an economic incentive bill.
San Francisco-based Wells Fargo is under increased pressure to spend less after cutting dividends and reporting a quarterly loss earlier this year. Chief Executive Officer Charlie Scharf, who took over the company in 2019, has repeatedly lamented the company's high costs and pledged to cut annual costs by at least $ 10 billion. Bloomberg reported in July that the cuts will begin this year and could reach tens of thousands in the years to come.
Wells Fargo is taking a number of steps to bring spending in line with that of its peers and has not yet set targets for the full downsizing, Ellis said. The bank expects to "reduce the size of our workforce through a combination of wear and tear, the elimination of open roles and job relocations," she said.
The company's stock, which is down 54% this year, rose 2.2% to $ 24.70 at 9:39 a.m. in New York.
(Updates with approvals in the last paragraph.)
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