Wells Fargo, America’s largest bank employer, has laid off more than 700 commercial-banking employees as part of workforce reductions that could ultimately impact “tens of thousands” of staff, Bloomberg reported on Wednesday.
The Bank had previously said in July it would launch a broad cost-cutting initiative as the bank braces for huge loan losses caused 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 said in a statement 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, without specifying the number of job cuts.
At the height of the Coronavirus pandemic earlier this year, the executives of Morgan Stanley MS.N, Bank of America Corp BAC.N and other large U.S Banks pledged not to cut any jobs in 2020.
However, as the heads of the big banks prepare for an extended recession and loan losses that come with it, layoffs seem to be back.