Wells Fargo has reportedly cut more than 700 jobs as part of its previously announced multi-billion dollar cost-cutting measure.
The layoffs affect positions across the commercial banking unit, which offers various services to business with over $5m in annual sales, Bloomberg reported.
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The bank, which is said to be the largest employer in the US banking industry, is the first lender to resume job cuts this year amid the Covid-19 pandemic.
In a statement, a spokeswoman for Wells Fargo said: “We are at the beginning of a multiyear effort to build a stronger, more efficient company for our customers, employees, communities and shareholders.
“As part of this work, we will have impacts, including job reductions, in nearly all of our functions and business lines, including commercial banking, where we have started displacements.”
According to the Bloomberg report, over 30 banks around the world have planned redundancies totalling 68,000 jobs.
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By GlobalDataAfter slashing its dividends, Wells Fargo is under immense pressure to save costs following a quarterly loss this year.
Wells Fargo CEO Charlie Scharf has voiced his concerns over the bank’s expenses and promised to slash at least $10bn in annual costs.
Ellis said that the lender is taking several measures to control the expenses and added that it has not yet set targets for total headcount reductions.
She said that the bank expects “to reduce the size of our workforce through a combination of attrition, the elimination of open roles and job displacements.”
Banks including Citigroup, Goldman Sachs and JPMorgan Chase have also made targeted reductions.
In June 2020, HSBC Holdings decided to resume its initial plans to axe 35,000 jobs that it had postponed due to the pandemic, which tanked its profits. The bank had planned to cut $4.5bn in costs at underperforming units in the US and Europe.
