Social media posts indicate that the dreaded layoffs have begun at Wells Fargo. The impact will be felt across all departments, business lines and operations of the American financial services company. Plans to lay off about 20 per cent of its over two lakh strong workforce had been revealed in early October. About 700 job cuts had already been reported in the Company’s commercial banking group.
With the focus on delivering better customer experience, the Company is aiming to become a leaner and more efficient organisation. Wells Fargo is working to improve the experience for its customers, employees, communities and shareholders. To accomplish this objective, the Company will have to resort to reducing its workforce, cutting down expenses and bringing in more agility.
The whole exercise is expected to be carried out in a transparent manner and the affected employees will be given appropriate severance and support with outplacements.
Wells Fargo has been struggling to handle financial issues for two years now. The pandemic has only added to the woes. The shares of the Company fell to the lowest ever in ten years. Recently, the Bank shared with its employees its plan to stop matching contributions to their 401(k) plans, for those whose incomes exceeded $250,000 annually. This decision to bring down eligibility for the retirement plan match, which is capped by the government at $17,100 per employee in 2020, is the Bank’s most significant move that affected its higher-paid employees.
The Bank has been closing its branches as part of its cost-cutting measures.