Wells Fargo to slash 3,800 jobs over 12 months

NEW YORK: Wells Fargo & Company will slash 3,800 jobs over the next 12 months, as part of a restructuring plan for its financial division.

The diversified financial services firm would be axing jobs at Wells Fargo Financial, which has about 14,000 team members.

"Approximately 2,800 positions (at Wells Fargo Financial) will be eliminated during the next 60 days, and 1,000 positions will likely be eliminated during the next 12 months," the company said in a statement on Wednesday.

According to Wells Fargo, the merger with Wachovia has eliminated the need for the company to have a separate financial unit. The merger of Wachovia with Wells Fargo happened in the wake of the financial meltdown in 2008.



As part of its restructuring strategy, Wells Fargo would also shut down 638 Wells Fargo Financial stores across the US and stop offering non-prime portfolio mortgage loans.

"Restructuring-related, pre-tax charges of approximately USD 185 million will be incurred in total, with USD 137 million, or USD 0.02 per common share, recorded in the second quarter 2010 for severance costs," it added.

Wells Fargo Financial president David Kvamme said it is committed to finding new positions for as many impacted team members as possible.

Hit by the ravaging 2008-09 financial crisis, many American companies had reduced their head count as part of their efforts to bring down costs.