Getting real clients is proving difficult for Wells Fargo
We hope you don’t work at Wells Fargo… because the company is planning to cut up to 26,500 jobs over the next three years. We guess there are less fake accounts to service? Just kidding. However, the rise of online banking and the legal bills resulting from those fictitious accounts are putting pressure on the bank.
You won’t have a job… but according to CEO Tim Sloan, you will be treated with respect, so there’s that. Legal troubles for Wells Fargo are proving costly and have cut into profit margins in a significant way. The hefty fines are one thing, but added scrutiny has also increased compliance and marketing costs. Last quarter, things like profit, loans, deposits, and revenue (you know, everything important) were down; however, expenses continued to rise.
Banks have been shutting down… and Wells Fargo will be joining those banks by dropping another 800 branches by 2020. The company will also be selling all branches in Indiana, Michigan, and Ohio. The third-largest bank in America is in a bit of trouble, to say the least…