Wells Fargo To Cut Around 3800 Jobs

July 8th, 2010 - 7:44 pm ICT by GD  

By Ranjan Bhaduri
Wells Fargo OutlookJuly 8, (THAINDIAN NEWS) The 4th largest bank of the USA(in terms of assets) Wells Fargo & Co has declared that it is going to cut off as many as 3800 jobs in near future. That will amount to around 1.4 percent of its entire workforce. The San Francisco-based company has also made it clear that it will shut down 638 of its independent consumer-finance branches and put an end to making nonprime house loans. Wells Fargo & Co acquired Wachovia Corp in 2008 for $12.7 billion which is considered as one of the biggest acquisitions in banking industry. It is now trying to streamline operations and do away with redundancies. However it will carry on with auto and home loans and credit card business though its 2,200 mortgage offices and 6600 retail branches.

The news of the job cuts came on Wednesday. Among the employees who would be shown the door 2500 are employees with the branches while the rest are support staff. The support staff are mostly based in Iowa. The bank will try to shift those employees in other designations as and when possible the bank management said. The market analysts are not amazed by this move by the bank but a section of the experts are surprised that it took so long to announce job cuts while other banks have done so before.

However wells Fargo will not layoff all the 3800 workers at one go. The layoffs will take place in the span of next one year as it has been reported. It remains to be seen if this affects its stock prices or not.

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