Wells Fargo said Thursday it will shed as much as 10 % of its workforce by 2021 as the bank struggles with continued fallout from multiple sales scandals.
The nation’s third-largest bank, which has 265,000 employees, will slim its ranks by between 13,250 and 26,500 workers through a combination of layoffs and attrition, according to a press release.
Chief executive Tim Sloan, who’s about to enter his third year as the bank’s top executive, said the bloodbath will make the bank more “streamlined and capable,” according to a statement released by the bank.
It wasn’t clear in the announcement where the bank would cut, but Sloan singled out “digital self-service abilities” — meaning possibly more automated bank branch services or mortgage lending — as driving the cuts.
“Wells Fargo takes very seriously any change that involves its team members, and as ever, we will be thoughtful and transparent, and treat team members with respect,” Sloan said in a statement.
The announcement arrives less than a month after the bank gave pink slips to 638 employees working in its mortgage division, according to Reuters.
It also comes a day after The Post reported that Sloan himself may be looking for work — as members of the board of directors had met with Gary Cohn earlier this year to take the CEO job.
Cohn turned the bank down, sources said, with Cohn himself telling The Post earlier this week he’s “absolutely not” talking to Wells Fargo.
Wells Fargo’s stock has been the worst-performing of the major banks this year so far, down 8.2 %.
Bank of America and JPMorgan Chase, which both rival Wells in mortgage lending, are up 6.1 % and 11.37, respectively — though they are also more competitive in investment banking and trading.
Wells is also facing multiple civil and criminal investigations, as well as class-action lawsuits over the company’s allegedly abusive sales practices.
Wells Fargo shares rose 0.6 % to $55.55.