Senior executives at Wells Fargo are expecting even more layoffs to impact the company soon.
The banking giant has slashed 40,000 jobs since 2020 and things are only expected to get worse as the fallout from the commercial real estate sector continues to affect banks and lenders.
Additionally, a banking crisis affecting the broader industry is placing additional pressure on Wells Fargo.
Don Johnson explained: “Wells Fargo CFO confirms more layoffs ahead – so total headcount has been reduced by ~40,000 in last 2 years.”
Wells Fargo CFO confirms more layoffs ahead – so total headcount has been reduced by ~40,000 in last 2 years
— Don Johnson (@DonMiami3) September 12, 2023
Users provided data on local bank branch closures, as well as balance sheets for several American banking institutions, with the implication that the banking crisis will only worsen.
1,144 Bank Branches Closed in the past 6 months
2023 TOP CLOSURES
PNC – 201
US Bank – 185
Wells Fargo – 160
JP Morgan Chase – 54
Bank of America – 49
Santander – 44
Citizens Bank – 38
Huntington Bank – 32
M&T Bank – 21
Fifth Third Bank – 19LIQUIDITY CRISIS INCOMING
— The Butcher of Wall Street Marcel Kalinovic (@BossBlunts1) September 5, 2023
1⃣ Citadel Securities – $45.76B SNP
2⃣ JP Morgan – $321.08B SNP
3⃣ Wells Fargo – $86.15B SNP
4⃣ Bank of America – $534.33B SNP$987.32Billion ($987,320,000,000)
Almost $1Trillion in assets sold & not purchased, What could possibly go wrong
(SOURCE 10-K) pic.twitter.com/M1qnQckY6S
— G-MAN (@GavinClimie) September 4, 2023
Reuters broke the story:
Wells Fargo had 233,834 employees at the end of the June quarter compared to 243,674 in the second quarter last year.
The bank has trimmed its mortgage business, which has also seen some layoffs.
In the June quarter, Wells Fargo increased its allowances for credit losses by $949 million to account for potential losses in office loans.
Economist E.J. Antoni reports: “Bank deposits tumbled $70B last week to the lowest level since mid-May; small banks had biggest deposit drain since banking crisis in Mar; deposit level at small banks lowest since Jul, level at large banks lowest since Apr ’21; Treasury borrowing sucking out all the oxygen.”
Bank deposits tumbled $70B last week to the lowest level since mid-May; small banks had biggest deposit drain since banking crisis in Mar; deposit level at small banks lowest since Jul, level at large banks lowest since Apr ’21; Treasury borrowing sucking out all the oxygen… pic.twitter.com/XnAAupwh22
— E.J. Antoni, Ph.D. (@RealEJAntoni) September 8, 2023
The Charlotte Observer provided this quote from Wells Fargo Chief Financial Officer Michael Santomassimo:
“We continue to believe we’ve got a lot more to do to make the company as efficient as it should be.”
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