Wells Fargo cutting jobs as demand slumps

Wells Fargo will eliminate 2,300 jobs in mortgage production because demand for refinancings has slumped and probably will drop more as interest rates rise.

Bloomberg News reports that other smaller cuts were made in the past few weeks around the country, said people with knowledge of the matter, who asked for anonymity because the changes haven’t been publicly disclosed.

The reductions would equal about 20% of the firm’s 11,406 mortgage loan officers employed as of March 31.

Wells Fargo has said mortgage lending will slow for the rest of this year as higher interest rates make refinancing less attractive. Those loans, which made up 70% of the mortgage market during the first half, slid to about 50% of applications recently and could fall further in coming months, Franklin Codel, head of mortgage production for the San Francisco-based bank, said in a memo to staff yesterday.

Wells Fargo was the largest employer among U.S. banks at midyear with about 274,000 people. The workers whose positions are being cut received 60 days’ notice on Wednesday and the firm is seeking to retain as many as possible by placing them in other jobs, said Jennifer A. Temple, a company spokeswoman.

To access the complete Bloomberg article hit the link below

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