Wells Fargo CEO Charlie Scharf informed investors on Tuesday that he anticipates severance expenses to exceed initial estimates, ranging between $750 million to just under $1 billion in the fourth quarter, Nupur Anand reported for Reuters.
Wells Fargo CEO Charlie Scharf I Photo: Microsoft
Scharf stated, "We are continuing to focus on efficiency, with turnover dropping. Unfortunately, we're going to have to be more aggressive about our own internal actions," adding that he believes it would be the right step in the long term.
Last month, the bank laid off fewer than 50 bankers from its corporate and investment bank after warning that its headcount could decline further as part of an efficiency initiative.
The bank has been reducing its workforce since the third quarter of 2020, with a headcount of 227,363 at the end of the third quarter of this year.
It is currently operating under an asset cap that restricts its growth until regulators are satisfied that it has addressed issues stemming from a fake accounts scandal. The bank still faces nine open consent orders from banking regulators requiring additional oversight of its practices.