Wells Fargo Anticipates Nearly $1B in Severance Costs Amid Layoffs

CEO Charles Scharf indicates a need for more aggressive headcount reduction as the bank faces low staff turnover and efficiency challenges.

Wells Fargo CEO Charles Scharf warns that severance costs for the fourth quarter could reach nearly $1 billion due to anticipated layoffs.
The bank has already laid off approximately 11,300 employees in 2023, which is about 4.7% of its workforce.
Scharf indicates that the bank needs to be more aggressive in reducing headcount due to low staff turnover and a need for increased efficiency.
Other banks, including Morgan Stanley and Goldman Sachs, have also been dealing with low attrition and have made significant layoffs this year.
Wells Fargo is set to release its fourth-quarter earnings report on January 12, 2024.