finance news

Wells Fargo & Co to cut 700 jobs in Manila in a major tech overhaul

Wells Fargo & Co to cut 700 jobs in Manila in a major tech overhaul
Wells Fargo & Co to cut 700 jobs in Manila in a major tech overhaul
Wells Fargo & Company, a California based financial services company, has reportedly announced plans to lay off around 700 workers in Manila and move some of their roles to India, where the firm already has about 12,000 tech workers.

Bloomberg, which was the first one to report about the eliminations of staff, also stated that the lender informed nearly 650 of its own tech workers in the U.S. that they would be required to move to a larger market in order to keep their jobs.

As per sources, the bank dismissed about 200 employees in its United States lending divisions back in 2019, as it responded to business trends and reorganized some units.

Wells Fargo last month registered a 55% drop in its Q4 quarter profit, since the new boss, Charles Scharf, set aside approximately $1.5 billion for legal costs associated with its recent sales scandal.

Banks have been combining technology operations, shutting down sites often, to increase efficiency and cut costs. Goldman Sachs Group Inc., a renowned U.S. based investment bank and financial services company, has reportedly stated that some jobs would shift to campuses in London as well as in Bengaluru, India. Bank of America Corporation also stated that it had concentrated its servers from 67 sites into 23 data centers.

Based on the latest announcement, the tech workforce of Wells Fargo in Manilla would fall to about 50 from over 750.

About Wells Fargo & Co:
Wells Fargo & Company is a California based multinational financial services company, with central offices across U.S. The firm's vision is to meet its customer's financial requirements as well as help them succeed financially. It provides investment, banking, consumer and commercial finance as well as mortgage products and services across 8,050 locations, approximately 13,000 ATMs, mobile banking, and internet.

The firm operates from the segments such as Wholesale Banking, Wealth & Investment Management, Community Banking, and others. Wells Fargo caters to the financial needs of one in three households in the U.S., having nearly 265,000 team members.

Source credit: https://www.reuters.com/article/us-wells-fargo-layoffs-philippines/wells-fargo-to-eliminate-about-700-jobs-in-manila-idUSKBN20805D