- Low employee turnover means the company will likely book significant severance expenses in the fourth quarter, Wells Fargo CEO Charlie Scharf said.
- “We have seen a decline in sales volume, and because of this, we will likely receive more severance pay than we expected,” Scharf said.
Charlie Scharf, CEO of Wells Fargo, speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. He speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023.
Patrick T. Fallon AFP | Getty Images
Low employee turnover means the company will likely book significant severance expenses in the fourth quarter, Wells Fargo CEO Charlie Scharf said Tuesday.
“We’ve seen a decline in trading volume, and because of that, we’re likely to get more severance pay than we expected,” Scharf said during a Goldman Sachs conference.
“We’re looking at somewhere between $750 million to just under $1 billion of severance pay in the fourth quarter that we didn’t anticipate, just because we want to continue to focus on efficiency,” Scharf said.
These expenses are an accumulation of layoffs and relocations, which Wells Fargo expects to make next year, according to a bank spokeswoman. Wells Fargo had 227,363 employees as of September.
Under the previous leadership, staff were spread across the country. Now, Scharf wants them near one of the bank’s office centers in San Francisco, New York, Minneapolis and St. Louis. Louis or Charlotte. If workers don’t choose to move, they could lose their roles, according to a person familiar with the situation.
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