Charlie Scharf is kicking more folks off the stagecoach.
The Wells Fargo chief has resumed layoffs after his plans were stymied by the onset of the coronavirus, and will move forward with deeper job cuts as he gets back to cutting costs at the scandal-plagued megabank.
A source confirmed to The Post that 700 jobs have been eliminated from Wells Fargo’s commercial banking division and that Scharf’s ultimate goal is to cut thousands from the bank’s headcount as he faces economic headwinds from COVID-19 while also reckoning with the aftermath of the sales fraud scandals he inherited from his predecessors.
“We are at the beginning of a multiyear effort to build a stronger, more efficient company for our customers, employees, communities, and shareholders,” a Wells Fargo spokesperson said in a statement. “The work will consist of a broad range of actions, including workforce reductions, to bring our expenses more in line with our peers and create a company that is more nimble, streamlined, and customer-focused.”
The spokesperson added that “As part of this work, we will have impacts, including job reductions, in nearly all of our functions and business lines, including Commercial Banking where we have started displacements.”
Wells Fargo set aside $9.6 billion to cover potentially bad loans at the end of its second quarter in July, signaling that it foresees a wave of defaults coming as the coronavirus continues to wreak havoc on the economy and the credit market in particular.
But Scharf is not alone. Goldman Sachs, JPMorgan and Citigroup have begun laying people off after freezing their pink-slipping in March as COVID-19 shut down the global economy.
Morgan Stanley and Bank of America pledged to keep their layoffs holstered until 2021, and have so far made good on their promise.
A Global Asset Management Seoul Korea Magazine