Wells Fargo, the third-largest bank in the US, has announced further job cuts as part of its $10 billion expense reduction plan. The bank's headcount has already decreased by 12.92% since 2020. CEO Charlie Scharf stated that the company is looking for additional opportunities to reduce expenses, with further headcount reductions and branch closings expected.

The bank's workforce has been reduced by 35,000 since 2020, and this year alone, the employee count has shrunk by 4.7%. Wells Fargo's Q3 2023 earnings exceeded market expectations, posting an EPS of $1.48. The company's mortgage business earnings have significantly dropped, leading to the reduction in headcount, primarily in its home lending division. The increasing mortgage rate, fueled by the Federal Reserve's interest rate hikes, has resulted in a decrease in home sales and a drop in home prices.