Wells Fargo Laying Off Workers, Closing Subprime Mortgage Deals

July 10th, 2010 - 7:05 pm ICT by GD  

By Ranjan Bhaduri
wells-fargoJuly 10, (THAINDIAN NEWS) Wells Fargo which is one of the largest banks of the USA is going to close 15 of its offices in Wisconsin as it has been reported. This is a part of the restructuring the lending entity is going through in recent times. A few days ago the bank had declared that it will gradually do away with its consumer lending business and concentrate on auto and home loans through its branches in the USA. The move will affect around 2800 employees of the bank. However, a Wells Fargo spokesman said that the bank will try to relocate the employees to its other sections. The consumer lending offices will no longer be required. This became evident after it acquired Wachovia Corporation sometimes back.

Wells Fargo will close down the offices in the next 2 months as it has been reported. Thousands of Well Fargo workers were intimated this week about an impending layoff in store for them. An inside source has reported that the employees of the bank in northland have better relocation opportunities compared to those from other areas. After laying off 2800 workers in two months the bank will also show door to another 1000 workers in next one year.

The decision to lay off workers came after the bank management decided that it will no longer carry on with subprime mortgages. The market for this loan has reduced greatly after the economic meltdown that grabbed the US economy two years back. The markets analysts are of the opinion that the move is natural and it will help Wells Fargo to stay competitive.

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