Wells Fargo & Co. plans to cut 3,800 jobs

July 8th, 2010 - 8:37 pm ICT by Aishwarya Bhatt  

San Francisco, July 8 (THAINDIAN NEWS) Wells Fargo & Co. plans to lay about 3,800 of its workers off. The bank is the fourth largest bank in the United States of America by the value of its assets.

The 3,800 work force represents about 1.4 percent of the bank’s total workforce. The bank also plans to close its consumer finance branch network.

The company said the move is to reduce redundancy in the company. The bank purchased Wachovia Corp. in 2008 for $12.7 billion. It says that it is merging the two companies and the lay-offs are being done to ensure that redundancies are removed or trimmed.

The bank said they will also stop making non-prime home loans, because they claim the non-prime home loans section has become so small that the company does not want devote any resources to maintain it.

Most financial institutions in the United States have reduced consumer lending in the country. Banks like Citigroup Inc and American International Group Inc have all made such moves.

Most of the employees who have been laid off are branch employees. About 2,500 of them will be laid off, while 1000 support staff will be removed. “We have a store network, and that is closing. Also some of the businesses have been branded Wells Fargo Financial and we will rebrand them over time,” according to David Kvamme, who is the president of the unit.

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