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Wells Fargo to cut workforce by 5-10% over next three years

Wells Fargo said it will trim headcount by as much as 10% over the period of next three years in a bid to cut costs and boost profits.

This decline would reflect displacements as well as normal team member attrition over that period, the lender said in a statement.

Tim Sloan, chief executive officer, Wells Fargo said that the bank 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.” He was addressing employees in a town hall meet.

The San Francisco-based bank is the fourth largest in US. Currently, it has approximately 265,000 employees. Last month, 600 employees in its mortgage division were served the pink slip as a result of slowdown in business.

“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. And even as we become more efficient, Wells Fargo will remain one of the largest employers in the US,” Sloan added.

As part of its turnaround plan, the bank said it will exit from its non-core businesses and invest more in digital automation. It stated that there was a need to address changed customer preferences amid rising adoption of digital self-service capabilities.

“We are addressing past issues, enhancing our focus on customers, strengthening risk management and controls, simplifying our organization, and improving the team member experience,” said Sloan.

The bank reported lower-than-expected profits in July. By 2020, it aims to reduce costs by $4 billion.

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