LONDON, U.K. - As part of its large-scale turnaround plan, Wells Fargo & Co has announced that it would reduce its headcount over the next three years.
The company said in its announcement that it would cut its workforce by about 5 percent to ten percent within the next three years.
In its statement, the company said that the cuts, would reflect displacements as well as normal team-member attrition.
Further, in a bid to become more efficient, the bank has stated that it will reduce its branch count by about 800 by the year 2020 and will sell non-core businesses to lower costs.
Wells has stated that it believes that the cuts will help the bank reach its goal of reducing costs by $4 billion by 2020.
The company, which is trying to recover from a series of scandals while operating under the Federal Reserve’s asset cap, is hoping that the range of moves will help the company grow its profit.
According to estimates, ten percent of its workforce would represent about 26,450 jobs - considering that the bank had roughly about 264,500 employees as of June 30th.
The move by Wells Fargo comes a month after the bank laid off 600 employees in its mortgage division.
However, in its latest layoffs announcement, the bank has not specified which departments or regions would be impacted by the reductions.
The cuts, the company has argued, will be made to reflect changing consumer preferences as more customers perform banking tasks using self-service technology.
Wells Fargo Chief Executive Tim Sloan said in a statement, “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."