Wells Fargo downsizes by 10%

The troubled US bank, Wells Fargo, is forecasting a sharp downsizing that could affect more than 26,000 people.

The firm expects the workforce to decrease by 5% to 10% over the next three years, thanks to a combination of reductions and regular attrition.

This decision is part of an effort to make the bank more efficient, as the sector evolves online, said boss Tim Sloan.

The firm is also trying to recover from a series of damaging scandals.

The California bank aroused public outrage in 2016 after finding that sellers had opened millions of accounts without their clients' permission.

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This spring, US regulators imposed a $ 1 billion fine on the company to settle malpractice claims related to mortgages and auto loans.

And in February, the US Federal Reserve, citing "widespread consumer abuse and other compliance issues," issued an unprecedented order that limited corporate growth pending improvements in the governance.

None of this has helped the financial situation of the company.

The bank, which recorded a 10% year-over-year decline in profits in the first six months of the year, announced plans to cut overall spending by $ 3 billion by 2020.

And in August, he announced layoffs of hundreds of workers in his mortgage lending unit.

Mr. Sloan said, "We are dealing with past problems, focusing more on customers, strengthening risk management and controls, simplifying our organization and improving the experience of our members. team."

He said the company would provide support to the affected employees and noted that the bank will remain one of the largest employers in the United States even after the reduction.

Wells Fargo, which previously had an excellent reputation and ranked third among US banks in March, had about 264,500 employees at the end of June.