Wells Fargo to Cut Jobs Over Next Three Years -- 2nd Update
September 20 2018 - 3:10PM
Dow Jones News
By Josh Beckerman
Wells Fargo & Co. on Thursday said it would reduce jobs as
part of its "ongoing transformation" to address industry trends and
changes in customer behavior.
The bank expects head count to decline by about 5% to 10% within
the next three years, which includes displacements as well as
normal attrition.
Wells Fargo had about 265,000 team members at the end of the
second quarter.
Chief Executive Tim Sloan, in a regularly scheduled employee
town hall meeting, discussed Wells Fargo's progress in becoming
more customer-focused and streamlined. "This work includes
strengthening risk management, simplifying operations, leveraging
digital automation, divesting noncore businesses, and continuing to
become a more efficient company," Mr. Sloan said.
Wells Fargo shares recently traded up 0.7% at $55.64.
The bank has contended with a variety of issues, including a
sales scandal at its consumer bank and claims of gender bias at its
wealth-management unit.
On Thursday morning, S&P Global Ratings affirmed its ratings
for Wells Fargo, saying it "continues to generate relatively solid
earnings and maintain decent customer flows despite persistent
reputational issues and elevated legal risks."
S&P noted that "governance, compliance, and control
deficiencies have surfaced" in several business areas, but Wells
"is addressing these issues using a multifaceted plan."
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
September 20, 2018 15:55 ET (19:55 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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