Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Wells Fargo to cut 3,800 jobs

By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- Wells Fargo will cut 3,800 jobs and close 638 stores in its financial division, the company said Wednesday.

The cuts are a result of the company closing Wells Fargo Financial, the company's consumer finance division that made "non-prime" home loans.

About 2,800 of the job cuts will happen in the next 60 days, and the remaining 1,000 positions will be eliminated over the next 12 months.

Wells Fargo's (WFC, Fortune 500) 2008 merger with Wachovia eliminated the need for a separate financial division, the company said.

"The economics of a separate Wells Fargo Financial channel are no longer viable," David Kvamme, president of Wells Fargo Financial, said in a statement.

Charges related to the restructuring will total $185 million, Wells Fargo said. About $137 million of those costs, or 2 cents per share, will be recorded in the second quarter of the year for severance. Most of the remaining charges will be incurred in the third quarter.

But ongoing cost savings should offset the charges within the next 18 months, the company said. To top of page

Search for Jobs

Index Last Change % Change
Dow 18,143.45 -195.79 -1.07%
Nasdaq 5,269.15 -49.39 -0.93%
S&P 500 2,151.13 -20.24 -0.93%
Treasuries 1.56 -0.01 -0.64%
Data as of 8:15am ET
Company Price Change % Change
Chesapeake Energy Co... 6.12 -0.63 -9.33%
Bank of America Corp... 15.16 -0.22 -1.43%
Procter & Gamble Co 88.23 -1.23 -1.37%
Wells Fargo & Co 44.37 -0.94 -2.07%
Qualcomm Inc 67.45 4.00 6.30%
Data as of Sep 29
Sponsors

Sections

Lawmakers grill Wells Fargo CEO John Stumpf about CNNMoney report on the bank retaliating against whistleblowers who flagged fake accounts. More

California workers who don't already have access to a retirement plan at work will soon be enrolled in a new state-run IRA savings plan. More