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Wells Fargo will cut 75 employees in the ninth wave of layoffs
https://www.whatjobs.com/news/usa/us-business-news/wells-fargo-will-cut-75-employees-in-the-ninth-wave-of-layoffs
By Nithya Bose in US business news, posted September 2, 2022
Struggling mortgage provider Wells Fargo will carry out more layoffs in the Des Moines metro area, to bring the overall local job losses this year to 366.
The banking giant notified Iowa Workforce Development of the layoff on Friday, August 26.
It told the state agency bosses it intends to lay off 75 workers in Ankeny, Clive, Des Moines, and West Des Moines from September 28 to October 25.
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Staff at its South Jordan Creek Parkway site in West Des Moines would be the most impacted by the new reductions, with 59 jobs lost.
The firm will also cut 13 employees at its downtown Des Moines office at 801 Walnut Street.
The recent move is the ninth wave of layoffs for Wells Fargo employees in the area, which serves as the headquarters for the bank's home mortgage division.
Since the outset of the year, the firm has seen a drop in mortgage applications as the Federal Reserve's Open Markets Committee hiked interest rates to moderate the highest ever rate of inflation in 40 years.
In July, CFO Mike Santomassimo told analysts that executives will reduce costs so the mortgage business would "remain challenging in the near term."
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A company spokesperson said: "Employee reductions are never easy.
"We regularly review and adjust staffing levels to match needs while also continuing to invest in our businesses and working to improve our customer’s experience."
It was reported that Wells Fargo, long ranked as one of the country's top mortgage lenders, may quit or significantly reduce its role in the industry.
Officials at Wells Fargo, the largest employer in central Iowa with over 13,000 employees, have not responded to the report.
The current change in business approach comes when Wells Fargo executives are under regulatory investigation following a scandal.
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It alleges the company urged employees to open phony accounts in customers' names, which resulted in a $3 billion fine in 2020.
In May, it was revealed that the firm staged interviews with women and people of color when managers had already chosen white males for specific positions.
The ruse led Wells Fargo executives to appear to be improving their diversity efforts.
In the aftermath of the controversy, many House Committee on Financial Services members demanded Scharf testify.
Source: The Des Moines Register
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