Wells Fargo CEO Tim Sloan Dons His Grinch Costume Announces Mass Wells Fargo Firings For The Holidays
Mass Wells Fargo firings have announced just in time for the holidays. Wells Fargo informed 1,000 employees their jobs will be eliminated. The bank’s consumer lending divisions will see the biggest hit. employees in those divisions will see 900 people lose their jobs.
Wells Fargo also plans to cut the bank’s workforce by as much as 10% over the next three years.
The mass Wells Fargo firings reflect the ongoing decreases in the number of Wells Fargo customers in default. It is also the result of the declines in mortgage application volume.
As a result, mass Wells Fargo firings will begin at Wells Fargo’s Des Moines, Iowa and Fort Mill, South Carolina facilities. The layoffs span Wells Fargo’s Consumer Lending and Payments, Virtual Solutions and Innovations groups.
Employees at those facilities received “pre-notices,” on November 15th.
Wells Fargo spokesperson Tom Goyda told the media:
Mass Wells Fargo firings are not surprising. The mortgage industry has been reducing headcount to address falling origination volumes. The reduction in volume is a result of higher rates and the slow down in the housing market.
Wells generated $46 billion in residential mortgage originations in the third quarter.
This is down from $59 billion a year earlier and $50 billion in the previous quarter.
Its mortgage banking noninterest income during the period was $846 million. This is down from $1 billion a year in 2017. However, it is up from $770 million in the second quarter. It attributed the consecutive-quarter increase to the relative improvement in the production margin on residential-mortgage originations held for sale.
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