Investing.com – Wells Fargo & Co (N: NYSE: WFC) has begun cutting jobs in its commercial division as part of wider cuts that will affect nearly every function and direction of its business, Reuters writes.
In early August, he resumed layoffs after suspending them in March due to the COVID-19 pandemic.
Wells Fargo warned in July that it will launch a sweeping cost-saving program this year as it prepares for huge loan losses due to the pandemic and continues to work to address costly regulatory and operational concerns over a long-standing sales scandal.
“We are embarking on a multi-year effort to build a stronger and more efficient company for our customers, employees, communities and shareholders,” a bank spokeswoman said Wednesday. “The work will involve a wide range of actions, including downsizing to bring our costs in line with those of our colleagues.”
Wells Fargo laid off 700 workers as part of a layoff that could ultimately affect “tens of thousands” of employees, Bloomberg News reported on Wednesday, citing informed sources.
In the spring, in the midst of the COVID-19 pandemic, executives from major American banks, including Morgan Stanley (NYSE: MS), Bank of America Corp (NYSE: BAC), and others, pledged not to cut jobs in 2020.
However, as bank executives prepare for a prolonged recession and related loan losses, layoffs are looming again on the horizon. Goldman Sachs (NYSE: GS) said last month that it plans to promote a “modest layoffs” program.
– In preparation, materials from Reuters were used