Wells Fargo cuts 1,900 jobs as refinancings slow

By @ibtimes on

Wells Fargo & Co said on Thursday it is shedding about 1,900 jobs, or less than 1 percent of its total workforce, as mortgage refinancings slow.

The San Francisco-based lender said notices went out March 23 giving the employees 60 days to find new jobs. Some will be reassigned in the company, spokesman Jason Menke said.

A majority of the jobs were temporary, created last year when refinancings surged due to record-low interest rates.

They were hired during the last several months to assist us with application volumes, Menke said. We had seen a significant increase in demand for mortgage refinancings throughout 2010.

Interest rates were favorable by historical standards, Menke said. Interest rates have edged up a bit. That's part of it.

The layoffs are occurring in Wells Fargo locations across the United States, Menke said, and affect about 3 percent of Wells Fargo's total mortgage staff of 52,000.

(Reporting by Philipp Gollner; Editing by Phil Berlowitz)

Join the Discussion