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After raking in profits, Wells Fargo plans to cut its workforce

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After raking in profits, Wells Fargo plans to cut its workforce

If you’re still unsure who the GOP’s tax scam was always meant to help, look no further than Wells Fargo.

The banking giant is raking in profits. CEO Tim Sloan got a $4.6 million raise in March. But now Wells Fargo is about to downsize its workforce by 5-10%, putting tens of thousands of people out of a job.

It’s just another reminder of the agenda behind the tax scam, enacted to line the pockets of those at the top—not workers. And it’s why Sherrod fights so hard every day to level the playing field. If you’re with him, show your support now:

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USA Today: Wells Fargo plans 5% to 10% workforce cut that could affect 26,500 positions

Kevin McCoy and Janna Herron – September 20, 2018

Key points:

  • Wells Fargo plans to cut its workforce by 5 to 10% within the next three years.
  • The San Francisco-based bank has roughly 265,000 team members, company records show. Given the estimated personnel headcount, the projected downsizing plan could affect as many as 26,500 Wells Fargo positions under a 10% reduction.
  • Sloan told company employees the downsizing represented a response to “changing customer preferences, including the accelerating adoption of digital self-service capabilities.” He similarly cited an “ongoing commitment to efficiency.”
  • The workforce downsizing “will not have much of an impact on the bank’s bottom line,” predicted Michael Moebs, the CEO of Moebs Services, a research firm for the financial services industry.”
  • The bank was hit with $185 million in civil penalties in Sept. 2016 as the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency and Los Angeles legal officials said Wells Fargo’s retail sales policies and the bank’s managers pushed employees to open as many customer accounts as possible.

Read more here.