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Wells Fargo cuts another 107 employees in Iowa as the housing market plunges
https://www.whatjobs.com/news/employment-news/wells-fargo-cuts-another-107-employees-in-iowa-as-the-housing-market-plunges
By Nithya Bose in Employment News, posted July 6, 2022
Wells Fargo has announced another wave of job cuts in the Des Moines metro area, more than doubling the number of employees slashed by the banking giant in central Iowa this year.
On Thursday, June 30, the financial services firm cut 107 employees in Ankeny, Des Moines, and West Des Moines, bringing the total number of cuts since April 21 to 197.
Company spokesperson Elise Corbett stated redundancies continue due to a slump in the housing market.
READ MORE: JPMORGAN CUTS MORTGAGE STAFF AS THE HOUSING DEMAND CONTINUES TO FALL
She said: "The employees affected by these changes have each been an essential part of our success.”
"We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling."
She added 35 percent of "those impacted in home lending so far this year" had chosen positions in other departments in the organization.
Wells Fargo's home mortgage division is headquartered in Des Moines, and the corporation is the metro's largest private employer, with around 13,000 staff.
Recent interest rate rises by the Federal Reserve to curb inflation have reduced the number of Americans seeking mortgages or refinancing existing loans.
The average rate for a 30-year fixed-rate mortgage in the United States was 5.8 percent as of Thursday.
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This is up from 3.1 percent at the start of the year and is the most in the US since November 2008.
With the cost of borrowing rising, the number of individuals purchasing homes in the United States fell at the start of this year.
Wells Fargo officials informed investors in their most recent quarterly report that the number of clients originating mortgages from January to March was down 27 percent compared to the same time in 2021.
The corporation posted a $3.67 billion quarterly profit, down from $4.64 billion the previous year.
Wells Fargo's stock price has declined roughly 19% to $39.40 per share after the news was issued.
The most recent Mortgage Bankers Association estimates, that there will be 2.41 billion mortgage originations in 2022, a 40 percent decrease from last year.
However, the industry association predicts refinances will fall by 69 per cent
Source: The Des Moines Register
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