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Wells Fargo shares rise; Plans 10% staff reduction amid online transformation

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Wells Fargo shares closed higher in the US Thursday, as the US bank announced it would shed between 5% and 10% of its workforce over the next three years. The reduction will occur as a combination of cuts and regular attrition, with the bank’s staff numbers set to drop by more than 26,000.

Wells Fargo shares ended the US Thursday trading session 0.60% higher at $55.55. The stock is also currently in the green in out-of-hours activity.

Well Fargo job cuts

US bank Wells Fargo said Thursday, that as it transforms and offers more online services for its customer base, it will reduce its current workforce by between 5% and 10%. The staff cuts will take place over a three-year period as the bank works to become a more efficient business.

“We are continuing to transform Wells Fargo to deliver what customers want – including innovative, customer-friendly products and services – and evolving our business model to meet those needs in a more streamlined and efficient manner,” said Wells Fargo CEO, Tim Sloan.

“Wells Fargo takes very seriously any change that involves its team members, and as always, we will be thoughtful and transparent, and treat team members with respect,” Sloan said.

“We have robust programs to make impacted team members aware of other job opportunities within Wells Fargo and provide support as they transition to the next phase of their careers. And even as we become more efficient, Wells Fargo will remain one of the largest employers in the United States,” he added.

Improved customer focus

The bank said the plans reflect the changing needs and requirements of its customers. In particular, Wells Fargo is concentrating on becoming a more customer focussed business and has already made significant steps towards that. They include:

  • Standardising process and reducing redundancies.
  • Prioritising spending to enhance and improve the customer experience.
  • Adding value through more customer friendly services and offers.

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