Wells Fargo Plans to Cut Staffing Up to 10% Over Three Years

  • CEO Sloan has been trimming expenses amid series of scandals
  • Analysts reduce profit estimates as Fed limit hampers bank
Tim SloanPhotographer: David Paul Morris/Bloomberg
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Wells Fargo & Co. plans to trim its workforce by about 5 percent to 10 percent within three years as Chief Executive Officer Tim Sloan works to pull the bank clear of customer-abuse scandals and prop up a lagging stock price.

Sloan, who made the announcement to employees at a town-hall meeting on Thursday, has reduced headcount as he cleans up the bank and streamlines operations. The San Francisco-based lender is struggling to grow under the weight of a Federal Reserve assets cap. It had 265,000 employees as of June 30, according to a regulatory filing.