Wells Fargo has begun its string of layoffs starting with 1,000 employees. 900 of those employees include mortgage lending professionals and 100 tech workers. This is the first round of layoffs part of their plan to cut the bank's workforce by 10%.
"The decreases in the company's mortgage division 'primarily reflect ongoing decreases in the number of customers in default' as well as 'declines in application volume,' spokesman Tom Goyda said in a statement," according to National Mortgage News.
"The Des Moines mortgage jobs are concentrated in the insurance/investor claims and default accounts payable groups, areas experiencing decreased workloads as foreclosure volumes fall. The volume of claims managed by this team is down 70% since the beginning of 2017, Goyda said in response to an emailed inquiry."
The report claims that some employees may be transferred to other positions within the company, however the number of transfers is unknown at the moment. The series of layoffs to come was reportedly part of the company's plan to help offset compliances expenses and fluctuation in volume.
"Wells generated $46 billion in residential mortgage originations in the third quarter, down from $59 billion a year earlier and $50 billion in the previous quarter," according to NMN.
To learn more about these layoffs and who will be affected by them, click on the image above.