Wells Fargo to Cut Jobs Over Next Three Years -- 2nd Update

By Josh Beckerman 

Wells Fargo & Co. on Thursday said it would reduce jobs as part of its "ongoing transformation" to address industry trends and changes in customer behavior.

The bank expects head count to decline by about 5% to 10% within the next three years, which includes displacements as well as normal attrition.

Wells Fargo had about 265,000 team members at the end of the second quarter.

Chief Executive Tim Sloan, in a regularly scheduled employee town hall meeting, discussed Wells Fargo's progress in becoming more customer-focused and streamlined. "This work includes strengthening risk management, simplifying operations, leveraging digital automation, divesting noncore businesses, and continuing to become a more efficient company," Mr. Sloan said.

Wells Fargo shares recently traded up 0.7% at $55.64.

The bank has contended with a variety of issues, including a sales scandal at its consumer bank and claims of gender bias at its wealth-management unit.

On Thursday morning, S&P Global Ratings affirmed its ratings for Wells Fargo, saying it "continues to generate relatively solid earnings and maintain decent customer flows despite persistent reputational issues and elevated legal risks."

S&P noted that "governance, compliance, and control deficiencies have surfaced" in several business areas, but Wells "is addressing these issues using a multifaceted plan."

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

September 20, 2018 15:55 ET (19:55 GMT)

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