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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,576.03 -304.33 -1.80%
Nasdaq 4,368.03 -94.87 -2.13%
S&P 500 1,931.66 -38.41 -1.95%
Treasuries 2.56 0.00 0.08%
Data as of 3:28pm ET
Company Price Change % Change
Micron Technology In... 30.58 -1.95 -5.99%
Bank of America Corp... 15.29 -0.29 -1.86%
Apple Inc 95.85 -2.30 -2.34%
Facebook Inc 72.70 -1.98 -2.65%
General Electric Co 25.21 -0.43 -1.68%
Data as of 3:13pm ET

Sections

TD Bank surprises customers on camera and the video goes viral on YouTube, with more than 3.8 million views in one week. More

With RadioShack burning through cash, investors and credit rating agencies believe its days are numbered. More

LinkedIn shares surged in after-hours trading Thursday following strong second-quarter earnings, following the likes of Facebook and Twitter. More

Terrell White has had a profit-sharing plan for his employees since 1981, believing that if the staff isn't happy, guests won't be either. More

The Mason family, which has been struggling to pay the $100,000 student loan bill they were left with when their daughter passed away five years ago, is now seeing an outpouring of support. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.