Wells Fargo plans to cut up to 10% of workforce in the next 3 years

  • A customer exits a Wells Fargo & Co. bank branch in Los Angeles Patrick T. Fallon/Bloomberg via Getty Images
    Patrick T. Fallon | Bloomberg | Getty Images A customer exits a Wells Fargo & Co. bank branch in Los Angeles Patrick T. Fallon/Bloomberg via Getty Images

Wells Fargo is lowering its employee headcount by 5 to 10 percent in the next three years as part of the bank’s ongoing turnaround plan, the company announced Thursday. “We are continuing to transform Wells Fargo to deliver what customers want — including innovative, customer-friendly products and services — and evolving our business model to meet those needs in a more streamlined and efficient manner,” the bank’s Chief Executive Officer Tim Sloan said in a press release. Wells Fargo has 265,000 employees, meaning the reduction would result in a loss of between 13,250 and 26,500 jobs. The decline will be a mix of displacements and team member attrition, Sloan said. The move is part of Wells Fargo’s “ongoing transformation, which addresses industry trends and changes in customer behavior, during a regularly scheduled companywide town hall meeting,” Sloan said. The company, which has $1.9 trillion in assets, blamed “changing customer preferences,” including the “adoption of digital self-service capabilities,” as a key catalyst. Shares had little reaction to the news, and were last up by about 0.8 percent.