Wells Fargo (NYSE:WFC) layoffs are in the news Tuesday as investors react to the financial company revealing plans to reduce its workforce.
According to a statement from Wells Fargo CEO Charlie Scharf, the company is planning to pay out severance costs between $750 million to $1 billion during its fiscal fourth quarter of 2023. Scharf said that these payments will be needed as the company adjusts its headcount amid low turnover rates.
This builds on other layoffs at Wells Fargo already announced this year. That includes some 11,300 jobs, or 4.7% of its employees, so far in 2023. All of this comes as Scharf seeks to keep the company’s workers nearby its various hubs in the United States.
Wells Fargo Leads Bank Layoffs
Alongside these recent comments came similar talks from other bank CEOs. Just like Wells Fargo, other banks are considering layoffs as employee retention rates remain higher than expected. Morgan Stanley (NYSE:MS) is among those planning similar jobs cuts, reports CNBC.
Wells Fargo layoffs are part of a larger trend as companies deal with a tough economy. That includes increased inflation, the high interest rates to combat them and other factors. That has seen several big businesses lower their headcounts to cut costs.
WFC stock is down 1.1% as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.