Wells Fargo & Company (WFC) announced another round of work-force trimming last week, this time in the mortgage servicing segment of its Homewood facility located in the Birmingham area. The company handed out a 60-day notice to 468 employees citing subdued foreclosure activities as the main reason for this step.
These layoffs represent the major part of total 481 job-cuts announced by the company nationally.
According to the officials, customers seeking payment assistance have lessened owing to the decline in foreclosure actions. This is enough to urge the company to shake-off the extra costs as it has been consistently on a cost-cutting spree since last year.
However, Wells Fargo offered support to the laid-off employees in the form of job counseling as well as severance pay for qualified personnel. Also, to further soften the blow, the company will make an effort to reposition these workers in its other branches.
The Homewood facility will continue to operate as before with the remaining 724 employees.
Given the struggling top line and decreasing mortgage banking revenues, Wells Fargo has been under pressure to remain profitable. In order to stay afloat amid the low interest environment and a thrust of banking regulations, the company has been trying hard to control expenses.
Wells Fargo is inching closer to success in its endeavors as it reported solid second-quarter earnings mainly backed by prudent expense management. The company discharged 700 employees in the beginning of the year and 2300 employees last year from its home lending business. (Read more about Wells Fargo’s second-quarter earnings here)
Facing similar hurdles like Wells Fargo, other banking majors like Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) have also been following an identical path.
Currently, Wells Fargo carries a Zacks Rank #3 (Hold).
Wells Fargo & Company (WFC) announced another round of work-force trimming last week, this time in the mortgage servicing segment of its Homewood facility located in the Birmingham area. The company handed out a 60-day notice to 468 employees citing subdued foreclosure activities as the main reason for this step.
These layoffs represent the major part of total 481 job cuts announced by the company nationally.
According to the officials, customers seeking payment assistance have lessened owing to the decline in foreclosure actions. This is enough to urge the company to shake-off the extra costs as it has been consistently on a cost-cutting spree since last year.
However, Wells Fargo offered support to the laid-off employees in the form of job counseling as well as severance pay for qualified personnel. Also, to further soften the blow, the company will make an effort to reposition these workers in its other branches.
The Homewood facility will continue to operate as before with the remaining 724 employees.
Given the struggling top line and decreasing mortgage banking revenues, Wells Fargo has been under pressure to remain profitable. In order to stay afloat amid the low interest environment and a thrust of banking regulations, the company has been trying hard to control expenses.
Wells Fargo is inching closer to success in its endeavors as it reported solid second-quarter earnings mainly backed by prudent expense management. The company discharged 700 employees in the beginning of the year and 2300 employees last year from its home lending business. (Read more about Wells Fargo’s second-quarter earnings here)
Facing similar hurdles like Wells Fargo, other banking majors like Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) have also been following an identical path.
Currently, Wells Fargo carries a Zacks Rank #3 (Hold).
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