A few hundred employees can expect to lose their jobs at Wells Fargo’s development centres in Hyderabad, Bengaluru and Chennai. The American banking and financial services company right now has 20,000 employees in India. As part of its global strategy to increase efficiency, the Company is now focussing on eliminating redundancy. This will mean cutting jobs in the support functions as well as technology testing units.
It is reported that several incentives and benefits have already been stopped and employees have been indirectly told to search for options elsewhere. The Company is examining the workforce to see whether more than the required number of people are doing the same job, to cut down on expenses by eliminating duplication of work.
The move does not come as a shock because the Company had announced its intention to reduce about five to ten per cent of its global workforce in September, 2018, in order to control costs.
Wells Fargo is not the only company in the banking and financial services space to plan layoffs. Last month, HSBC Bank laid off about 200 employees in India from the technology function. Deutsche Bank has reduced its staff by one fifth across the globe, which has affected about 18,000 employees. At Bank of America too, openings have dipped by approx. 1,000 listings in the last couple of months. But then, it is not hopelessness and despair all the way, because there are also banks such as the Citigroup and Goldman Sachs, that are on a hiring spree.