Wells Fargo, America’s largest financial institution employer, has laid off greater than 700 commercial-banking employees as half of workforce reductions that could in the end impression “tens of thousands” of workers, Bloomberg reported on Wednesday.
The Bank had beforehand stated in July it might launch a broad cost-cutting initiative because the financial institution braces for big mortgage losses brought on by the coronavirus pandemic.
“We are at the beginning of a multiyear effort to build a stronger, more efficient company for our customers, employees, communities, and shareholders,” a spokeswoman stated in a press release on Wednesday.
“The work will consist of a broad range of actions, including workforce reductions, to bring our expenses more in line with our peers,” she added, with out specifying the quantity of job cuts.
At the peak of the Coronavirus pandemic earlier this 12 months, the executives of Morgan Stanley MS.N, Bank of America Corp BAC.N and different massive U.S Banks pledged to not minimize any jobs in 2020.
However, because the heads of the massive banks put together for an prolonged recession and mortgage losses that include it, layoffs appear to be again.