UPDATE: NOVEMBER 15, 20118 — WELLS FARGO ANNOUNCES PLANS TO ELIMINATE 1,000 EMPLOYEES
Perhaps to counter the massive fines and poor stock market performance, Wells Fargo has announced plans to reduce their headcount by at least 1,000 workers in their Consumer Lending and Payments, Virtual Solutions, and Innovations groups.
Especially hard hit is the company’s home lending function which has seen a reduction in both loan applications and one the back-end, borrower defaults.
This should come as no surprise to employees who were told previously that Wells Fargo would be conducting a reduction-in-force of 26,000 over a three-year period.
UPDATE: AUGUST 24, 2018 WELLS FARGO LAYS OFF 638 IN MORTGAGE LENDING OPERATIONS
As a direct consequence of the downturn in mortgage originations and refinancing activity, plus the decrease in loan defaults, Wells Fargo has laid off 638 people in its "retail fulfilment and default servicing teams" in the states of California, Colorado, Florida, and North Carolina.
In the expected perfunctory corporate-speak statement, a spokesperson noted, "After carefully evaluating market conditions and consumer needs, we are reducing to better align with current volumes. The decision to reduce our workforce is made with great concern for our team members.”
Wells Fargo, beset by scandal and increased regulatory scrutiny has announced that it will lay off 593 works at its Winterville Dealer Service Center near Greenville, North Carolina with the work being distributed to other Wells Fargo facilities in Raleigh, North Carolina, Minneapolis, Chandler, Arizona, and Irving Texas.
It has been reported that the layoffs are directly attributable to Wells Fargo’s decision to close its Wells Fargo Auto, Corporate Finance, Corporate Risk, Enterprise HR Solution, Enterprise Information Technology, Marketing, Operations and Operational Risk and Compliance business units at the Winterville facility
It is no secret that the automotive lending industry is under intense scrutiny as regulators attempt to impose many of the same financial controls and consumer disclosures that are found in other financial sectors, namely the mortgage industry. Or that Wells Fargo is responsible for over $1 billion in fines and penalties for past behavior.
In the end, the costs of any malfeasance or financial improprieties are borne by the shareholders, the depositors, and most of all, the employees.
Are you asking yourself, Am I Next?