The handwriting is clearly on the wall for all to see as the Wells Fargo CEO, Tim Sloan, “shared progress with team members on the company’s ongoing transformation, which addresses industry trends and changes in customer behavior, during a regularly scheduled company-wide town hall meeting.”
In a release, Sloan noted, “Wells Fargo is continuing to make fundamental changes designed to make the company more customer-focused, streamlined, and better positioned for long-term success and operational excellence. This work includes strengthening risk management, simplifying operations, leveraging digital automation, divesting non-core businesses, and continuing to become a more efficient company.”
But the key take-away was that, “ Given changing customer preferences, including the accelerating adoption of digital self-service capabilities, the focus on operational excellence, and ongoing commitment to efficiency, the company expects headcount to decline by approximately 5 to 10 percent within the next three years. This decline would reflect displacements as well as normal team member attrition over that period.”
Since the bank currently has approximately 265,000 employees, the reduction would result in a loss of between 13,250 and 26,500 jobs.
It is time for employees to prepare for the future because we are betting that the layoffs will be coming sooner than later to improve share prices given the hefty penalties being assessed by regulators for various Wells Fargo misdeeds.
Are you wondering, Am I Next?