Wells Fargo plans to cut up to 10% of workforce in the next 3 years

Wells Fargo Chief Executive Officer and President Timothy Sloan testifies before the Senate Committee on Banking, Housing and Urban Affairs on Capitol Hill in Washington, Tuesday, Oct. 3, 2017, during a hearing on Wells Fargo after one year.

Wells Fargo, the third-biggest U.S. bank, plans to lower its employee headcount by 5 percent to 10 percent in the next three years as part of its ongoing turnaround plan, the company announced Thursday.

The bank has 265,000 employees, meaning the reduction would result in a loss of between 13,250 and 26,500 jobs.

“We are continuing to transform Wells Fargo to deliver what customers want — including innovative, customer-friendly products and services — and evolving our business model to meet those needs in a more streamlined and efficient manner,” the bank’s Chief Executive Officer Tim Sloan said in a press release. The decline will be a mix of displacements and team member attrition, Sloan said.

The bank is still recovering from multiple scandals across its major business units in the past two years. In 2016, it was revealed that branch employees had opened millions of fake accounts in customers’ names without their knowledge to meet sales targets.

Wells Fargo switched up its executive ranks following the scandal but other investigations into its sales practices unearthed issues in its auto lending, mortgage and wealth management.

Source: CNBC

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