It’s been a rough few years for Wells Fargo, as the megabank has faced scandal after scandal, settlement after settlement, and billion-dollar fine after billion-dollar fine.
And the next few years won’t be much better, for as many as 26,500 of the bank’s employees.
That’s because Wells Fargo announced Thursday that it expects to see a reduction in headcount of as much as 10% of the company’s workforce in the next three years. The company currently has approximately 265,000 employees, meaning as many as 26,500 could be out of a job by 2021.
The company said that the cuts could be between 5% and 10% of its total workforce, but even with a reduction of only 5%, that’s still 13,250 jobs eliminated within the next 36 months.
According to the bank, the coming cuts are the result of consumers’ preference for “digital self-service,” a “focus on operational excellence,” and the bank’s “ongoing commitment to efficiency.”
As such, the bank said that it expects its headcount to decrease by approximately 5% to 10% within the next three years.
According to the bank, that decline would “reflect displacements as well as normal team member attrition over that period.”
The bank has already undertaken several rounds of layoffs in different segments of its business in the last several months.
Just last month, it was reported that the bank was laying off 638 mortgage lending employees in different parts of the country. Earlier this year, the bank announced it was laying off 100 employees at a North Carolina mortgage office, and another 63 mortgage employees at a Maryland office.
It’s unclear if these newly announced reductions include those previously announced moves or not and the bank did not indicate which departments will impacted.
Regardless, more cuts are coming. Wells Fargo CEO Timothy Sloan says the bank take the cuts “very seriously” and plans to help its soon-to-be former employees.
“We are continuing to transform Wells Fargo to deliver what customers want – including innovative, customer-friendly products and services – and evolving our business model to meet those needs in a more streamlined and efficient manner,” Sloan said in a release.
“Wells Fargo takes very seriously any change that involves its team members, and as always, we will be thoughtful and transparent, and treat team members with respect,” Sloan added.
“We have robust programs to make impacted team members aware of other job opportunities within Wells Fargo and provide support as they transition to the next phase of their careers,” Sloan continued. “And even as we become more efficient, Wells Fargo will remain one of the largest employers in the United States.”
Sloan also said that despite the myriad number of issues the bank has faced in recent years, Wells Fargo is working to improve and plans to continue to do so.
“We are addressing past issues, enhancing our focus on customers, strengthening risk management and controls, simplifying our organization, and improving the team member experience – all in the spirit of building a better Wells Fargo for our customers,” Sloan concluded.
