Wells Fargo has indicated that its workforce will continue to shrink as the bank accelerates investments in artificial intelligence (AI) and technology to improve efficiency. While overall employee numbers are expected to decline, the lender said it will continue hiring for roles that support business growth and digital transformation.
During the bank’s second-quarter earnings call, Mike Santomassimo, chief financial officer, said advances in AI and technology are enabling the organisation to operate more efficiently, allowing it to function with a smaller workforce over time. He noted that technology-led productivity improvements are being realised faster than in previous years.
The US banking giant has now reduced its workforce for 24 consecutive quarters. At the end of the second quarter, Wells Fargo employed around 1,97,000 people, down by nearly 79,000 employees over the past six years. The bank’s headcount also fell by 15,000 compared to the same period last year and by about 3,500 from the previous quarter.
Despite the ongoing reduction in overall staffing, Wells Fargo is continuing to recruit in selected areas. Hiring remains active for branch bankers, commercial banking relationship managers, investment advisers, investment bankers and trading professionals, particularly across key growth markets. The bank is also expanding teams in technology, cybersecurity and AI-related functions to strengthen its digital capabilities.
The workforce update came alongside strong financial results for the quarter ended 30 June.
The bank recorded robust growth across several business segments. Banking revenue increased by 20 per cent, while commercial banking revenue grew six per cent, supported by higher lending activity and deposit growth. Consumer businesses also reported gains in credit card accounts, auto lending and wealth management.
Wells Fargo’s approach reflects a broader trend in the global banking industry, where financial institutions are leveraging AI and automation to streamline operations while selectively hiring talent in technology, cybersecurity and customer-facing business functions that are critical to long-term growth.
