Wells Fargo Plans to Lay Off Over 1000 Employees
The economy isn’t serving everyone well, especially not bank Wells Fargo, as the plan to lay off 1800 workers from their mortgage department.
This is the second time in a matter of months that the bank has done mass layoffs in this department, letting go 2300 jobs from that same unit during the month of August. These cuts come as the bank claims fewer people are refinancing their mortgages than the bank originally expected.
Tim Sloan, Wells Fargo’s chief financial officer, had warned earlier this month that the bank may have to cut jobs if mortgage demand weakens. Sloan blamed a spike in interest rates over the summer for weaker demand. His comments came during a presentation to analysts in New York.
While many officials have spoken of an improving housing market, many people are not reaping the benefits as the interest rate begins to climb while the housing market slowly comes back. The bank gave employees a 60 day advance notice of their termination, and are looking for other positions within the company for the people being let go.
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