Wells Fargo Cuts 274 MN Jobs Amid Slowing Demand
A drop-off in the demand for mortgage loan applications has forced San Francisco-based Wells Fargo & Company to cut 274 jobs in Minnesota, most of which are interim positions.
In total, the company will lay off 1,900 mortgage-division employees across the country. Employees were notified about the cuts on March 23 and will lose their jobs in late May.
Company spokesman Jason Menke told Twin Cities Business that a “vast majority” of the cuts affected interim employees who helped with loan application processing. Those positions were created last year because of a “significant demand for consumer refinancing,” he said.
“[The employees] were aware that it was a short-time assignment that was ending sometime in the future,” Menke said.
The interim workers whose positions were cut will not receive severance packages, but the regular employees who lost their jobs will receive packages, which include pay and benefits continuation based on their years of service with the company. All laid-off employees will receive job placement assistance.
In its fourth-quarter, which ended December 31, Wells Fargo's home-mortgage applications declined 19 percent from the previous quarter. The company also said that it had a home-mortgage application pipeline-applications that had not yet been processed-totaling $73 billion at the end of the quarter, representing a 27.7 percent decrease from $101 billion at the end of the previous quarter.
Wells Fargo is among the state's 10-largest employers with about 20,000 employees in Minnesota. The cuts represent about 1.4 percent of its local work force and more than 3 percent of its national mortgage division work force.