Massive California banks are now closing according to new reports, including several Wells Fargo branches and one BMO branch.
This week, 5 big bank branches are closing in California, a trend that is only expected to grow in the years to come.
Why are we seeing traditional branches across America collapse?
The rise of online banking has greatly impacted traditional banks, causing the entire industry to pivot and adapt to the ever growing digital world.
The following bank branches are expected to shutter in California soon:
- Wells Fargo. 303 2nd St, San Francisco
- Wells Fargo. Hores Parkway, Redwood City
- Wells Fargo. 305 W. Sepulveda Blvd, Torrance
- Wells Fargo. 7950 West Sunset Blvd, Los Angeles
- BMO Bank. 6055 East Washington Blvd, City of Commerce
“All over California, 277 bank branches have closed so far this year, second only this century to 2020, when 325 branches closed.
Branch openings are a much rarer occurrence: Only eight have occurred statewide this year,” reports Governing.
A recent report states that Wells Fargo plans to lay off approximately 525 of its employees based in Columbia, South Carolina, and close the bank’s corporate office there by June 30, 2024.
“Wells Fargo leaders are working to provide up-to-date facilities with modern workspaces and technology to create a more collaborative work environment that is a better employee experience,” Wells Fargo wrote in a notice.
“At the same time, we need to concentrate Wells Fargo real estate investments in fewer locations or reduce space in existing real estate,” the bank said.
Bank of Montreal (BMO) is cutting 228 jobs in California’s Bay Area next month, as the Canadian lender continues to shed positions following its February acquisition of San Francisco-based Bank of the West.
Other Banking News Today
A massive US bank now lays off 2,000 employees in efforts to cut back on costs after announcements were initially made in September.
Charles Schwab has laid off about 5% to 6% of its employees, amounting to roughly 2,000 people, as it looks to cut costs, per numerous reports.
A Schwab spokesperson said these “were hard but necessary steps to ensure Schwab remains highly competitive, with industry-leading levels of efficiency, well into the future.”
The company only released a percentage of how many people were laid off and didn’t give a precise number, but Schwab’s headcount was 35,900 as of September 30, according to a corporate fact sheet.
“They are decisions that impact very talented people personally, and we take that very seriously,” a spokesperson said.
“We worked diligently to ensure affected employees were treated with care and respect throughout this difficult process.”
The cost-cutting measures were first announced in the summer, with the brokerage looking to cut $500 million in costs as it faces investor pressure, reports CNN.
Part of the changes includes evaluating its “real estate footprint, streamlining our operating model, and staffing reductions, largely in non-client-facing areas,” a Schwab spokesperson said.
Like other banks, Schwab endured turbulence earlier this year when its bottom line was given a hard look by investors after the collapse of Silicon Valley Bank.
Citigroup also confirmed during the second quarter that new layoffs (1,600 in the second quarter) will push the total job cuts to 5,000 this year.
Wells Fargo also said that it could see its headcount decline further as it aims to improve efficiency, per Chief Financial Officer Mike Santomassimo.
Charles Schwab stock is currently down more than -35% this year-to-date.
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