| Wells Fargo & Co. is taking fire for laying off 137 people in its mortgage division in Orlando, Florida, while it expands operations overseas.
The bank-holding company Monday said allegations by the Communications Workers of America union that recent jobs in its mortgage division are being moved out of the country are “completely inaccurate.” Wells Fargo is laying off 638 people nationwide, it said Thursday. The union said Wells Fargo has been expanding its call centers in the Philippines, last year announcing 7,000 new jobs, while cutting positions in the United States. “Wells Fargo needs to start admitting that offshoring plays a major role in the bank’s continued rounds of domestic layoffs,” said a statement from CWA legislative director Shane Larson. “Despite repeated calls from lawmakers to reinvest in their American workforce and despite the bank’s multimillion-dollar ad campaign pledging that they want to earn back the public’s trust, Wells Fargo continues to prove itself unwilling to rein in its damaging practices.” Wells Fargo spokeswoman Gabriela Lambertus said there is no connection between the job cuts in the mortgage division and expansions overseas. “None of these jobs are being relocated anywhere domestically or overseas,” she said. “These are true job reductions.” Wells Fargo blamed the layoffs on changes in “market conditions and consumer needs.” Home builders and sellers have noted slowdowns in the real estate industry, but Wells Fargo has been dealing with backlash of its own from the fraudulent-account scandal during the past seven years. Wells Fargo has launched a series of advertisements telling consumers that the bank has changed its practices and is trying to win back trust. The Communications Workers of America also criticized Wells Fargo for being the largest beneficiary of last year’s tax-cuts law, which analysts say saved the bank about $3.7 billion. |
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