Thousands get the axe as mortgage layoffs continue

by Ryan Smith22 Aug 2013

The nation’s biggest home lender is cutting thousands of jobs from its mortgage production division.

Wells Fargo, which with a staff of about 274,000 is the largest employer among U.S. banks, will axe about 2,300 employees in its mortgage unit, according to a Wall Street Journal report.

The banking giant has already given several hundred people their walking papers, announcing smaller rounds of layoffs in July and earlier this month. In July, Wells Fargo gave about 350 employees in their mortgage division 60 days’ notice. In August, another 763 got pink slips.

The latest round of job cuts is set to affect employees across the country, a Wells Fargo spokesman told the Journal. The spokesman would not reveal if the bank plans to cut more staff in the future.

Wells Fargo has said that it expects higher interest rates to slow the demand for refinancing in the coming months.

“The low interest rate environment of the past few years allowed us to staff up to meet the demand we were seeing,” Wells Fargo spokeswoman Angie Kaipust said following the July layoff announcement. “As this fast-paced demand for refinancing is slowing somewhat, we need to reduce staff to align with the business need.”

Wells Fargo posted record profits of $5.56 billion in the second quarter.


  • by Dominick F. Sammarone | 8/22/2013 10:16:06 AM

    It doesn't appear to be a Real Estate Boom currently or in the near future with these MASS LAYOFFS. A lot of planning and projection studies go into these layoffs due to market contractions and projections. Remember, half the industry was "crushed and eliminated" in the 2008 crash. Only the "BIG" banks are left. It aint looking' good kids...

  • by Bayview Mortgage Inc | 8/22/2013 10:26:32 AM

    This means rates are coming down. Wellsfargo is always a day late and a dollar short on all its decisions. Its surprising Wellsfargo makes any money. they unload people. then rates drop so they hire people back. but by that time, its too late. They are probably going to just rely on all the other lenders to supply wellsfargo with their business.

  • by Scruff | 8/22/2013 11:55:16 AM

    Wells is a disaster. It is looking great for non-bank correspondent lenders. Wells is big, dumb and slow. We are able to hire great candidates now that there wre layofs. I disagree with the idea that it is a "BIG" bank world.


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