A nationwide round of layoffs by Wells Fargo Home Mortgage will impact 400 employees — with a majority in two states. Falling loan originations are behind the job cuts.
The Des Moines, Iowa-based subsidiary of Wells Fargo & Co. has advised 400 people about their impending layoffs in 60 days. The notices went out across the country.
According to a statement from Wells Fargo Home Mortgage Consumer Lending Communications Alfredo Padilla, the decision was related to loan production.
“After carefully evaluating market conditions and consumer needs, we are reducing to better align with current volumes,” the statement said. “The decision to reduce our workforce is made with great concern for our team members.”
Residential loan originations at Wells Fargo have fallen to $43 billion as of the first-quarter 2018 from a recent peak of $59 billion in the third quarter of last year.
While more details weren’t provided about specific locations that are impacted, KTSP-TV reported 130 of the layoffs are in Minnesota’s Twin Cities, while The Charlotte Observer reported 100 on the layoffs are taking place in Fort Mill, South Carolina.
Padilla noted that the company is committed to retaining valued employees and, where possible, will work to identify other opportunities within the organization.
For employees who are unable to find an alternative position within Wells Fargo, they might be eligible to participate in a salary continuation plan for separation benefits based on how many years they have been employed.
