California Wells Fargo and Jobs Gone

By: Bill Waters
07/08/2010 09:26 AM ET

Wells Fargo and jobs cut as 638 offices to be gone. More than 3,800 jobs will be eliminated as Wells Fargo plans to restructure its consumer finance unit. In addition, Wells Fargo plans to cut 2,800 positions in the next two months, and another 1,000 jobs will be eliminated next year.

The San Francisco-based bank is consolidating Wells Fargo Financial into its community banking network. The company says 638 independent consumer finance offices will be closed as a result. In addition, Wells Fargo said it will no longer originate non-prime mortgage loans.

The layoffs represent about 27 percent of Wells Fargo Financial’s 14,000 employees. Overall, the company has more than 278,000 employees. The remaining employees at its financial offices will be reassigned to other company businesses.

The changes won’t impact Wells Fargo and Wachovia community banks across the country. The company purchased Wachovia in December 2008. Analysts had been expecting the bank to earn 49 cents per share in the second quarter.

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