Wells Fargo Lays Off 300 in Arizona
Wells Fargo Bank announced it will lay off nearly 300 employees in Tempe as part of a nationwide cutback. Wells Fargo earned a net income of $5.5 billion in the second quarter this year. It was a record, but rising interest rates have made the company’s home refinancing business less profitable. With rates expected to go higher, Wells Fargo announced it will lay off 2,323 employees nationwide.
In July, CEO John Stumpf told investors the bank was preparing for changes.
“We knew rates would eventually rise, and we have been planning for rising rate environment for quite some time. Some of our businesses do better in a lower rate environment, and others benefit from rising rates.”
In Tempe, 291 employees will lose their jobs. One will be laid off in Phoenix. The employees were given a 60-day notice.