The big bank announced this week it is laying off 638 mortgage employees in California, Colorado, Florida and North Carolina, according to an article written by Hanna Levitt for Bloomberg.
The bank’s latest earnings report indicated it continues to struggle following its fake accounts scandal. Not only did the bank report a lower net income, its latest earnings report shows that although originations are increasing, it is still struggling with mortgage banking revenue.
Affected employees were informed of the upcoming layoffs on Thursday. Employees will be eligible to receive pay and benefits through Oct. 21, the company said.
However, employees unable to find another position within the company may be eligible to participate in the Wells Fargo salary continuation plan for separation benefits based upon the number of years of service with the bank, according to Wells Fargo’s SVP of Consumer Lending Operations Tom Goyda.