Wells Fargo now warns of massive layoffs for 2024 as the banking giant announces a whopping $1bn severance hit.
So far, Wells Fargo, which has its corporate headquarters in California, has fired approximately 11,300 employees in 2023.
This is equal to nearly 5% of its nearly 230,000 workforce, reports CNBC.
As layoffs continue into 2024, Wells Fargo CEO Charlie Scharf has warned investors the costs could amount to a staggering $1 billion.
However, Scharf did not confirm the number of employees that would be affected by the next round of layoffs.
“We’re looking at something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren’t anticipating, just because we want to continue to focus on efficiency,” Scharf told investors during a Goldman Sachs conference in New York.
“Wells Fargo needs to get “more aggressive” managing headcount because employee attrition has slowed this year,” Scharf added.
That expense is an accrual for worker layoffs that Wells Fargo expects to make next year, according to a bank spokeswoman.
The company declined to say how many jobs it will cut, says CNBC.
Wall Street leaders including Scharf and Morgan Stanley CEO James Gorman have said that unusually low attrition among their workers has left them bloated.
The industry has been cutting jobs in the past year as it deals with rising funding costs, a prolonged slump in Wall Street deals and concern over loan losses.
Wells Fargo, the fourth-biggest U.S. bank by assets, was already among the most active in laying off workers this year, thanks in part to its “retrenchment” from the mortgage arena.
The bank has cut about 11,300 jobs so far in 2023, or 4.7% of its workforce, and had 227,363 employees as of September, reports CNBC.
Also Read: A Massive Bank Now Closes Several Branches in Florida
Other Banking News Today
A massive bank is now freezing customer accounts which is prohibiting users from gaining access to their money up to weeks.
The-Sun reports that Bank of America froze several checking accounts due to suspicions of illegal activity.
The Bank of America customer took to Reddit to ask for help regarding their banking situation.
They explained that they have one personal checking account with $40,000 in it, and two business accounts with $800,000 between them both.
They sold their small business for around $1 million earlier in the year.
Their post says that they logged into the Bank of America app and that the “screen is grey-ed out and it says my accounts are frozen” for all accounts.
The Reddit user called Bank of America, and was told that their account is under review and they will receive a letter in the mail or a call soon.
“Its been 2 weeks and 3 days. I call every single day and hear the same thing. I went in personally to the branch – and they say the same thing.”
They came up with a potential reason for the situation: “The only thing I can think of is that I have made a few sports bets by putting money into PayPal from this personal checking account, and when I’ve won money I’ve deposited it from PayPal into the personal checking account.”
Reddit users explained how the accounts were likely under investigation for suspicious activities related to the sports betting, and that the bank legally has to freeze their accounts.
One user wrote: “They are checking your account for illegal activity. I’m not suggesting there is any, but they are looking at your account for that reason.”
Another user suggested the following: “Open a CFPB complaint against BofA and move your money out of a large bank… Go to a credit union, even a larger one like PenFed or DCU. Both are easy to join.”
Also Read: A US Bank is Now Denying Customers Access to Money
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