CHARLOTTE, N.C. — Wells Fargo & Co. said Friday it has started layoffs as the bank seeks to cut costs by almost 20%. It’s the start of what could be the biggest transformation of the company since it shifted its primary focus to banking from transportation more than a century ago.
The San Francisco-based bank is expected to lay off tens of thousands of employees, gut layers of management, shutter more branches, slash vendor spending and possibly even move its headquarters out of California, where it was founded in 1852. Wells Fargo ould not say how many jobs are being cut this month.
Last month, Wells Fargo CEO Charlie Scharf hinted at the scope of the transformation on the second-quarter earnings call to the apparent disbelief of some of his listeners. But the chief executive, who took the helm last October to rebuild the scandal-plagued bank, sees plenty of room to boost operational efficiency and focus on more profitable parts of the banking business.
“We do see a clear path to start making an impact on the expense base,” Scharf said. “It’s like an onion, the more we do, the more clear the next round will become.”
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