A spokesperson said on Friday that Wells Fargo & Co recommenced its job cuts in early August following a pause in layoffs in March due to the ongoing COVID-19 pandemic. The bank's executives had said in July that cuts to third-party spending, branch closures, and layoffs could not be ruled out.
The spokeswoman said in an email that, "We expect to reduce the size of our workforce through a combination of attrition, the elimination of open roles, and job displacements." She added that the company was working towards curbing expenses and building a company that is more "nimble". The affected staff will be provided career assistance and severance by Wells Fargo.
Decisions on Job Cuts Held Back by Big US Banks
The lender said in July it would launch a broad cost-cutting initiative this year as the bank braces for massive loan losses caused by the pandemic and continues to work through expensive regulatory and operational problems tied to a long-running sales scandal.
Big US banks had postponed decisions about staff cuts when the virus outbreak first began to take hold, with executives saying they are unsure how long the outbreak would hurt the economy and worried about being unprepared if business suddenly snaps back.
Wells Fargo's Resumption of Layoffs
Bloomberg News first reported the resumed job cuts on Friday. Initial cuts will affect people the bank had planned to let go early this year before the pandemic halted layoffs, the Bloomberg report said, citing people briefed on the situation. Bloomberg Law reported in July that Wells Fargo is preparing to cut thousands of jobs starting later this year.
(With inputs from agencies)