Michael M. Santiago
Wells Fargo (NYSE:WFC) reportedly laid off hundreds of mortgage bankers this week as part of the banking giant’s efforts to create a more focused home lending business amid weak demand for mortgages brought about by higher interest rates.
The bank has been working to simplify its mortgage business over the past three years, focusing on existing customers rather than expanding operations.
“We communicated openly with impacted employees and provided opportunities for severance, career assistance, and other services,” a Wells Fargo (WFC) spokesperson told Seeking Alpha in an emailed response. “Additionally, we intend to retain as many employees as possible.”
They added that affected employees may be transferred to other roles within the bank.
The job cuts this week impacted some high-performing employees as well, CNBC reported citing people aware of the matter, including a few bankers who crossed $100M in loan volumes last year. Some were top salespeople that were rewarded with a trip to a resort in California earlier this month.
The layoffs included mortgage bankers and home loan consultants, who are compensated mostly on sales volume, the report noted.
Earlier, Wells Fargo (WFC) CFO said the U.S. economy is going to get worse this year, but consumer spending data remains healthy.
