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Wells Fargo Announces Second Round of Layoffs in West Des Moines

Wells Fargo Announces Second Round of Layoffs in West Des Moines

  Breaking news refers to stories that have recently happened and require immediate coverage, such as plane crashes or fires that must be reported immediately. It could include anything of significance occurring now requiring coverage in real time such as plane wreckage or fire outbreak. Wells Fargo recently informed employees at its home mortgage division in West Des Moines of their imminent layoff due to the declining mortgage market. Staff levels are being reduced accordingly. 1. Home Lending Wells Fargo is set to reduce its home mortgage lending operations in Des Moines after industry growth slowed due to higher interest rates and competition from non-bank lenders such as Rocket Mortgage. As usual, Wells Fargo pledges its full support as employees transition into other divisions or search for work outside the bank. Kristy Fercho, an executive for Wells Fargo, wrote to affected employees and explained the layoffs as part of an "ongoing effort to streamline and simplify" their business. According to her letter, the bank is reviewing all its operations to identify more efficient methods for serving customers, improving products, and offering growth opportunities - this move should save the firm $500 million annually. Wells Fargo is currently in the process of consolidating and shrinking the number of branches it operates across Iowa, with three offices serving Des Moines alone. A spokesperson from Wells Fargo tells Axios that later this year they plan to leave two buildings located at 800 Walnut St and 206 8th St but has yet to decide their future use. Wells Fargo began laying off employees nationwide in April. Since that date, Wells Fargo has cut 107 positions from Des Moines-area locations as part of a national cull that began then. According to company statements, these job cuts are "the result of cyclical changes within the mortgage banking industry." As previously noted by the Des Moines Register, Wells Fargo has reduced approximately half its workforce since 2010. Wells Fargo has been under federal order to reduce costs following a fake accounts scandal, and recently agreed to settle a class action suit from investors alleging executive statements concerning progress made toward meeting those requirements. Unfortunately, however, Wells Fargo still faces other legal and regulatory issues that must be dealt with in addition to these settlements. 2. Commercial Lending Wells Fargo maintains multiple locations in Des Moines and Iowa, including its home mortgage division at their Jordan Creek Parkway campus. Last week, Wells Fargo informed Iowa Workforce Development that employees at that branch would be laid off. When KCCI inquired further, however, they failed to reveal which offices or how many employees had lost their jobs. These layoffs are part of Wells Fargo's larger restructuring initiative. Since 2022, the lender has moved away from correspondent lending business in favor of core banking and wealth management as a response to increased competition in digital lending market; this change should save them millions annually as it leads to approximately 6,500 employee reduction. Furthermore, Wells Fargo is restructuring their wholesale channel in an attempt to improve efficiency and increase productivity. Wells Fargo continues to face regulatory issues despite taking cost-cutting steps, with investigations into opening accounts without customers' consent, charging unnecessary insurance policies, and imposing fees tied to mortgage rates requiring payment by customers who switch from traditional branch service options to online self-service options. This has had an adverse impact on Wells Fargo as customers increasingly turn to these self-service options for customer interactions. Whilst fintech lenders have experienced growth in digital lending, mortgage industry turmoil continues to occur. Over the past several months, several companies have laid off staff or closed branches altogether. Better Mortgage, founded by former Sprout Mortgage CEO Vishal Garg and headed up by Vishal himself, had to offer voluntary buyouts to an unspecified number of employees in both the U.S. and India in late December as a result of falling origination volumes as interest rates continue to increase. Better's merger with an acquisition company remains at risk while it faces both federal lawsuit and SEC investigation scrutiny. Better's parent company PacWest Bancorp was hit with another round of layoffs at residential real estate investor lender Civic Financial. Nearly 200 staff at Ohio operations and closing one branch in Colorado due to declining demand were laid off in this move. 3. Wealth Management Last week, 107 Wells Fargo employees in Des Moines were informed they will be laid off, part of an overall cull that began back in April and involves 14,000 Wells Fargo employees nationwide. A company spokesperson explained this move is part of an "aggressive restructuring initiative." As part of their efforts to focus on Jordan Creek Campus, the bank will soon vacate three Des Moines buildings and one in West Des Moines later this year. A decision regarding what will become of these vacant spaces has yet to be determined, while plans for exiting multiple other locations remains vague. Comprehensive wealth management plans take into account your financial goals, tax status, risk tolerance and more. They're usually best suited for people with enough assets that require a team of professional wealth managers who work together to coordinate all aspects of their finances to reach the same financial objectives. These firms typically charge either a flat fee or a percentage of assets under management (typically beginning at one percent). There may also be options that allow you to only pay for services you use such as systematic investment plans or retirement advisory advice. Wealth management firms also frequently provide tax advice. This can include strategies for minimizing taxes and optimizing deductions, as well as setting up trusts or other vehicles to protect your family legacy and providing advice regarding estate planning. Wealth managers and financial planners both serve a similar client base. Wealth management often offers more comprehensive services than investment advisors or planners do; wealth managers typically cater more specifically to wealthy clients with significant investments or complex needs (i.e. investors in the upper 97th percentile or those needing tax advice or estate-planning tools). 4. Insurance Since 1852, Wells Fargo has provided customers with the tools to build businesses and manage finances in an ever-evolving world. Now with $1.9 trillion in assets under management, the bank serves one in three households and 10% of small businesses - offering consumer, small business and commercial banking; mortgage lending; wealth management services as well as corporate and investment banking products and services. Wells Fargo, with headquarters in San Francisco, California and more than 70 million customers around the globe, operates globally through a diverse team of over 200,000 employees dedicated to serving them. Their wide variety of product offerings and innovative solutions enable customers to meet their financial goals efficiently. While recent scandals and missteps may have caused some customers to distrust Wells Fargo, efforts continue to win back customer confidence. Wells Fargo's corporate and investment banking division provides capital to companies of all sizes - from startups to multinational conglomerates. Individual investors also find assistance through retirement, brokerage and private client services provided by Wells Fargo; its securities division offers products including fixed income trading as well as equity and derivative derivatives trading. Wells Fargo provides its community banking division, including checking and savings accounts, credit cards, loans, mortgages and other deposit products to individuals and small businesses alike. Their home mortgage division specializes in refinancing, new purchase and adjustable-rate mortgage loans while their credit card business offers various credit and debit card products to consumers. Wells Fargo Investment Services help clients invest their money by providing various investment solutions ranging from automated self-directed trading and investing to working closely with a financial advisor. In addition, its insurance division provides personal and business products. The Consumer Financial Protection Bureau's settlement with Wells Fargo requires them to pay more than $2 billion in consumer redress and a $1.7 billion civil penalty for legal violations across several of their product lines, which resulted in fees and interest charges that consumers were not entitled to, damage to thousands of credit ratings and foreclosure of homes without legal authority, as well as improper car repossession and unlawful foreclosure proceedings against certain customers. Furthermore, Wells Fargo must stop charging illegal surprise overdraft fees on deposit accounts.

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