The bank earlier announced plans to implement a broad cost-cutting programme to prepare for losses from Covid-19
Exterior of a Wells Fargo branch. (Credit: Wells Fargo)
Wells Fargo has reportedly axed more than 700 jobs in its commercial banking division as part of a previously announced multi-billion dollar cost-cutting programme.
The layoffs impacted positions across the unit, reported Bloomberg, citing unnamed sources.
A company spokeswoman called Katie Ellis told the publication that at least some job cuts had taken place.
Ellis, was quoted by the publication, as saying: “We are at the beginning of a multiyear effort to build a stronger, more efficient company for our customers, employees, communities and shareholders.
“As part of this work, we will have impacts, including job reductions, in nearly all of our functions and business lines, including commercial banking, where we have started displacements.”
Wells Fargo announced plans to slash 5-10% of its global workforce in 2018
In September 2018, Wells Fargo said that it intended to terminate up to nearly 26,500 jobs of its global workforce over a period of three years for streamlining its operations.
In early August 2020, the US bank resumed the layoffs having put them on hold in March due to the coronavirus pandemic, reported Reuters.
Prior to that, in July, the banking major said that it will implement a broad cost-cutting programme this year to prepare for the huge loan losses resulting from Covid-19. Besides, the bank had been hit by regulatory and operational issues associated with a long-running sales scandal.
For the second quarter of 2020, Wells Fargo reported a loss of $2.4bn while its total revenue dropped 17% to $17.8bn compared to the second quarter of 2019.
In the first quarter of this year, the bank was hit with an 89% drop in its net income at $653m compared to the first quarter of 2019. The bank’s revenue came down from $21.6bn in Q1 2019 to $17.7bn in Q1 2020.