Wells Fargo Reportedly Cuts More Than 700 Jobs in Commercial Banking

Wells Fargo says it expects to reduce its workforce 'through a combination of attrition, the elimination of open roles and job displacements.'

Wells Fargo  (WFC) - Get Wells Fargo & Company Report reportedly has cut more than 700 commercial-banking jobs and the bank ultimately could reduce tens of thousands positions.

Shares of the San Francisco-based financial services company were up 2.77% to $24.84 in trading Wednesday.

The terminations affected positions across the division, Bloomberg reported, citing people with knowledge of the situation.

The unit offers a variety of services to businesses that typically have more than $5 million in annual sales. 

Wells Fargo said in a statement that "we are at the beginning of a multiyear effort to build a stronger, more efficient company for our customers, employees, communities, and shareholders."

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"The work will consist of a broad range of actions, including workforce reductions, to bring our expenses more in line with our peers and create a company that is more nimble, streamlined, and customer-focused," the bank said. "We expect to reduce the size of our workforce through a combination of attrition, the elimination of open roles, and job displacements."

As part of this work, the statement continued, "we will have impacts, including job reductions, in nearly all of our functions and business lines, including Commercial Banking where we have started displacements."

Wells Fargo, the U.S. banking industry’s largest employer, became the first major lender in the nation to resume job cuts this year after a number of top firms said they would try to offer workers stability during the Covid-19 pandemic.

Wells Fargo is under pressure to spend less after slashing its dividend and suffering its worst quarter in more than a decade in July.

More than 30 banks around the world are behind planned staff reductions totaling about 68,000, according to figures compiled by Bloomberg.

Much of that’s being driven by HSBC Holdings  (HSBC) - Get HSBC Holdings PLC Sponsored ADR Report, which said in February it would reduce its workforce by 35,000 as part of a plan to cut $4.5 billion of costs at underperforming units in the U.S. and Europe.