Wells Fargo signals more layoffs ahead for bank workers in latest efficiency move
Wells Fargo, which maintains a significant hub of 27,000 employees in Charlotte, continues to reduce its workforce with “a lot of room to go,” bank executives said Tuesday during the second-quarter earnings call.
Read more You’re outta there! Fans fume after popular baseball team ejected from Mooresville stadium
While reporting $22.62 billion in revenue, a 9% increase compared to a year ago fueled by gains across all business segments, the banking giant signaled further layoffs are on the horizon.
“We expect that we should be able to run this company with less headcount than we’ve got today,” Chief Financial Officer Mike Santomassimo told analysts following the bank’s earnings call. “Certainly, technology and AI helps us get at aspects of that faster than maybe in the past, but we expect that we’ll continue to see more efficiency from here.”
The number of Wells Fargo employees has declined for 24 consecutive quarters, CEO Charlie Scharf said. The bank’s workforce has shrunk by 79,000 people over the past six years.
The bank’s total headcount stands at 197,000 as of the second quarter, a job cut reduction of 15,000 from last year and 3,500 from the last quarter, he said.
“One of the ways you can clearly see the results of our efficiency initiatives is through headcount,” Scharf said.
While the bank is reducing overall staff, Scharf emphasized that the company is hiring in high-growth areas to capture market share and deepen client relationships. Wells Fargo is hiring branch bankers, investment advisors, commercial banking relationship managers, and investment bankers and traders, Scharf said.
“Investments like this are improving productivity, strengthening the client experience and driving improved advisor hiring and retention,” he said.
Read more CMPD makes its case for teen curfew change as tool to ‘keep our youth safe’
This hiring is concentrated in 20 markets where the bank can expand. Wells Fargo also is increasing investments in technology-related roles, specifically in AI development and cyber defenses, to modernize its platforms.
“Our willingness to invest more in senior talent and in technology, and dedicate more balance sheet to these activities, is paying off,” Scharf said. “The plan is working.”
Wells Fargo’s net income reached $12.3 billion in the second quarter, representing a 5.2% year-over-year increase.
Other highlights from the latest quarter from April 1 to June 30 compared to a year ago:
While concerns around affordability and inflation persist, the labor market and wage growth remain strong, Scharf said.
“We are clearly benefiting from the economic strength we see in the U.S. but the investments we are making, and our improved operating discipline, drove strong momentum and continued to result in improved performance,” he added.
Read more ACC football is revising its tiebreaker system — and preparing for more change
