Wells Fargo could see higher-than-expected layoffs in the fourth quarter of 2025, according to comments made by senior executives during the bank’s latest earnings call (Charlotte Business Journal).
The San Francisco-based bank — which has a significant presence in Canada — has already reduced its global workforce by 24% since its 2020 peak of roughly 276,000 employees. As of September 30, 2025, Wells Fargo reported about 211,000 employees, marking a 1% decline from the previous quarter and 4% fewer than a year earlier.
Chief Executive Officer Charlie Scharf told investors that the latest workforce reductions are tied to ongoing efficiency improvements rather than outsourcing or divestitures.
“This was not driven by business sales or outsourcing but, in fact, real improvement in our efficiency,” Scharf said. “We’ve also significantly reduced how much we spend on professional and outside services as well as non-branch real estate.”
The company recorded a $296 million charge for severance costs in the third quarter, and its Chief Financial Officer Mike Santomassimo warned that additional layoffs could push expenses higher in the final quarter of the year.
“As we finish our budget for 2026 and plan for our efficiency initiatives next year, we could have additional severance expense in the fourth quarter that is not included in our outlook,” Santomassimo said.
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