Wells Fargo & Co (NYSE:WFC)’s axes over 1800 jobs

Posted by Michael Korte September 20, 2013 0 Comment 961 views

On Thursday, Wells Fargo & Co (NYSE:WFC) confirmed that it is axing 27 jobs in Raleigh and 150 in Charlotte. Apart from this, it is also discontinuing 1,865 jobs across the company. There has been a decline in mortgage services demand and this move is a direct outcome of this situation. A 60-day notice has been given to the affected employees.

The spared regions

On 21 August, Wells Fargo & Co (NYSE:WFC) said that it was cutting 48 jobs in Raleigh and 284 in Charlotte as part of a companywide job cut of 2,323 jobs. Most of the employees who have been asked to leave are from the consumer-mortgage loan processing unit. Christine Shaw, a company spokesperson said that the Triad region remains unscathed. Another region that went unsigned in Winston Salem and no job cuts will take place there either. This is the 2nd time both these regions have been spared the axe.

Business reaction

The Triad West is referred to as the 26-county region, by the bank. The largest employment-chunk in this area in Forsyth County, with over 4,000 jobs. On the other hand, the 9-county Charlotte area has around 20,500 employees. These employee cuts come in the wake of the Wells Fargo & Co (NYSE:WFC) reports that increase in interest-rates have led to a drop in refinancing demand from homeowners. Very recently, in a similar move, BAC had also cut down over 2,000 mortgage jobs across the company.

Other cuts

The spokesperson said that the bank is weighing the current market and its own business needs and wants to align itself in a better manner in order to increase efficiency. The job cuts are a take-off from that decision. Associated Press reports have stated that Wells Fargo & Co (NYSE:WFC) will also eliminate 176 jobs in Tempe, Arizona and 332 in the Minneapolis, St-Paul area.

About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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