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Fri, Jul 09, 2010 - Page 10 News List

Wells Fargo cutting 3,800 workers in restructuring

AP , NEW YORK

Wells Fargo & Co said on Wednesday it would lay off 3,800 employees over the next year as part of a restructuring of its consumer finance unit.

The San Francisco-based bank is consolidating Wells Fargo Financial into its community banking network. The company said 638 independent consumer finance offices would be closed as a result.

In addition, Wells Fargo said it would longer originate non-prime mortgage loans.

The layoffs represent about 27 percent of Wells Fargo Financial’s 14,000 employees. The company said 2,800 positions would be eliminated in the next two months, and another 1,000 positions would be cut in the next year.

Wells Fargo has more than 278,000 employees.

The remaining employees at Wells Fargo Financial offices will be reassigned to other Wells Fargo businesses.

The changes won’t impact on Wells Fargo and Wachovia community banks across the country, the bank said.

Wells Fargo bought Wachovia in December 2008.

Wells Fargo said the restructuring would result in US$0.02 per share charge in the second quarter. Analysts had been expecting the bank to earn US$0.49 per share in the second quarter, according to Thomson Reuters.

The remaining restructuring charges will be recorded in the second half of the year.

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