Wells Fargo To Layoff As Deals Slump
Wells Fargo & Co is cutting 40 to 50 jobs in its corporate and investment banking division, according to sources familiar with the decision, making the bank the latest major financial firm to cut staff amid a deal drought that has lasted more than a year, as per media reports.
According to the sources, the bank is laying off a number of managing directors as part of a cost-cutting effort, as well as more junior positions, but the decision has not been made public.
The move demonstrates that even firms seeking to increase their market share in investment banking are reducing their workforces in a slow dealmaking environment. Under CEO Charlie Scharf, the fourth-largest US bank has sought to become a more formidable Wall Street player. Simultaneously, he has made cost-cutting a key component of the firm's turnaround strategy. As of September 30, Wells Fargo had 227,363 employees, a 5 per cent decrease from the previous year.
