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 19,684.76 69.95 0.36%
Nasdaq 5,433.34 15.98 0.29%
S&P 500 2,253.45 7.26 0.32%
Treasuries 2.47 0.08 3.31%
Data as of 1:05pm ET
Company Price Change % Change
Bank of America Corp... 23.08 0.12 0.54%
Chesapeake Energy Co... 7.68 0.08 1.05%
Twenty-First Century... 27.82 -0.82 -2.88%
Apple Inc 114.12 2.00 1.78%
Ford Motor Co 13.14 0.11 0.84%
Data as of 12:50pm ET
Sponsors

Sections

FedEx CEO Fred Smith is warning about the dangers of clamping down on free trade, especially tearing up NAFTA, or the North American Free Trade Agreement between the United States, Mexico and Canada. More

Trump says he sold all his stocks in June. But what about his hedge funds? He was (and may still be) invested in three run by John Paulson, a major campaign donor. More

Samsung will release a software update starting on December 19 that prevents all remaining Galaxy Note 7 smartphones from charging. More

Survey finds that Millennials don't think a Trump presidency will have any affect on their finances. Here's how it might. More