Wells Fargo & Co. warned that as many as 26,500 layoffs are ahead as it improves its operations, pays more attention to its customers and gets past recent scandals.
The San Francisco-based bank-holding company reported in its second-quarter results that its company-wide staff was 264,500 as of mid-year 2018.
But that number will be reduced as Wells Fargo continues its transformation from a tainted financial institution that is still overcoming numerous scandals.
Fundamental changes are being made to make Wells Fargo more customer-focused, streamlined and better positioned for long-term success, a news release Thursday said.
“We are addressing past issues, enhancing our focus on customers, strengthening risk management and controls, simplifying our organization, and improving the team member experience — all in the spirit of building a better Wells Fargo for our customers,” Wells Fargo Chief Executive Officer Tim Sloan said in the announcement.
In order to execute this latest phase of transformation, Wells Fargo said it expects to cut its headcount by between 5 percent and 10 percent over the next three years.
Based on the the most recent payroll, staff reductions — which will be achieved through layoffs and attrition — could range from 13,225 people to 26,450 employees.
A company spokesman declined to comment about how many mortgage jobs might be impacted or where the layoffs will be concentrated.
Recent mortgage layoffs at Wells Fargo include 638 disclosed in August and 400 announced in June.
