Wells Fargo has signalled further workforce reductions after cutting 79,000 jobs over the past six years, with senior executives saying the bank expects to operate with fewer employees as investments in technology and artificial intelligence improve efficiency.
Speaking during the bank's second-quarter earnings call, Chief Financial Officer Mike Santomassimo said Wells Fargo still has scope to reduce headcount, even as the lender reported stronger financial results.
"We expect that we should be able to run this company with less headcount than we've got today," Santomassimo told analysts, according to the Charlotte Observer. He added that technology and AI are helping the bank achieve efficiency gains more quickly than in the past.
Headcount continues to decline
According to Chief Executive Officer Charlie Scharf, Wells Fargo's workforce has declined for 24 consecutive quarters, making headcount reduction one of the clearest indicators of the bank's efficiency programme.
As of the second quarter, Wells Fargo employed 197,000 people, down from previous periods. Key workforce figures include:
- 79,000 jobs eliminated over the past six years.
- 15,000 fewer employees than a year ago.
- 3,500 jobs reduced compared with the previous quarter.
- 197,000 employees worldwide at the end of the second quarter.
Scharf said the bank continues to improve operational efficiency while reshaping its workforce.
AI supports efficiency, not a hiring freeze
While Wells Fargo expects further reductions in overall staffing, executives stressed the bank is continuing to recruit in areas tied to long-term growth.
According to the Charlotte Observer, hiring is focused on strengthening customer-facing businesses and expanding technology capabilities.
The bank is recruiting:
- Branch bankers
- Investment advisers
- Commercial banking relationship managers
- Investment bankers and traders
Hiring is concentrated across 20 growth markets, where Wells Fargo sees opportunities to expand its presence.
The bank is also increasing investment in AI development, cybersecurity and broader technology roles to modernise its platforms.
Scharf said these investments are improving productivity, enhancing the client experience and supporting recruitment and retention of advisers.
Financial performance strengthens despite workforce reductions
The workforce update accompanied another quarter of revenue and profit growth.
For the quarter ended June 30, Wells Fargo reported:
- Revenue of $22.62 billion, up 9% year on year.
- Net income of $12.3 billion, an increase of 5.2%.
- Banking revenue up 20%.
- Commercial banking revenue up 6%, with average loans rising 9% and deposits increasing 10%.
- Credit card accounts up 46%.
- Auto loans up 41%.
- Wealth management revenue up 13%.
Scharf said the bank continues to benefit from the resilience of the US economy while improved operating discipline and targeted investments have supported business performance.
Banks continue balancing efficiency with strategic hiring
Wells Fargo's latest workforce update reflects a broader shift across the financial services industry, where banks are using AI and automation to streamline operations while selectively hiring for specialist and revenue-generating roles.
Rather than freezing recruitment, the lender is redirecting investment towards technology, cybersecurity and client-facing positions, signalling a continued reshaping of its workforce as digital transformation accelerates.