NEW YORK (TheStreet) -- In the past few weeks many banks have started to conduct layoffs as part of restructurings or mergers.
In addition, after hiring sprees in 2010 many investment banks pulled back and are focusing on bringing in top tier talent and cutting low performers. For example, investment banks like Jefferies and Morgan Stanley (MS), have both announced that they are looking to attract more experienced talent by paying more in compensation.
Banks are also cutting employees to meet regulatory requirements, while many banks are trimming down employees in certain businesses and building in others. Banks that we predicted would conduct layoffs in February have already announced and are continuing to do further restructuring of their business.
But a new round of cost cutting is hitting the banking industry.Wells Fargo (WFC) announced that it is laying off 1,900 employees in its home mortgage division nationwide. The termination notices were sent to employees on in mid-March. Many of the employees that were laid off were subsequently rehired as temporary employees last year, according to an article in the Killeen Daily Herald, a Texas-based newspaper. Employees in North and Central Texas, Iowa, California and North Carolina. Those employees will lose their jobs with in 60 days. "While we may reduce staff in some areas, we are also hiring in other areas. For example, in our annual report, it said we had 6,500 open jobs at the end of 2010. We are hiring," said a Wells Fargo spokesperson. Wells Fargo is one of several mortgage lenders that is under investigation by regulators for its handling of mortgage put-backs. So it is possible there could be further layoffs in its mortgage division. Wilmington Trust (WL) shareholders approved the $351 million merger with M&T Bank (MTB) on March 22. Federal regulators are expected to approve the deal in a couple of months. Once the deal is give the go ahead, M&T Bank will lay off 700 employees from Wilmington Trust. Layoff notices are expected to be sent out in the late summer, according to The Wall Street Journal The employees that will be laid off will mostly be employees that have back office jobs or corporate positions.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV