Today Wells Fargo sent out a press release stating that they are closing 638 or their offices and cutting 3,800 jobs due to restructuring.
Wells Fargo Financial offered various loans and mortgages to consumers with low credit scores. This is the division that Wells Fargo is eliminating and cutting jobs. Wells Fargo said there is no need for this division any longer since the merge with Wachovia.
The total number of employees in the Wells Fargo Financial division exceeded 14,000 people. 2,800 of those employees will be laid off in the next 60 days and the remaining 1,000 though out the following 12 months. The rest of the employees will be relocated within the company.
The cost to process this restructure is a mind boggling 185 millions dollars. To help ease the financial burden Wells Fargo will institute a $0.02 per share restructuring charge in the second quarter of 2010.