Wells Fargo Cuts 40 More Jobs in Iowa Amid CEO's $29 Million Pay Package

Wells Fargo announces 40 layoffs at its Jordan Creek campus in West Des Moines, Iowa, bringing total layoffs to 302 since April 2023. Meanwhile, CEO Charlie Scharf's 2023 compensation package increases by $4.5 million to $29 million.

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Salman Akhtar
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Wells Fargo Cuts 40 More Jobs in Iowa Amid CEO's $29 Million Pay Package

Wells Fargo Cuts 40 More Jobs in Iowa Amid CEO's $29 Million Pay Package

Wells Fargo announced another round of layoffs at its Jordan Creek campus in West Des Moines, Iowa on the same day that shareholders approved a $4.5 million increase in CEO Charlie Scharf's 2023 compensation package, bringing his total pay to $29 million. According to the state's Worker Adjustment and Retraining Notification (WARN) released on Tuesday, Wells Fargo is laying off 40 employees from its West Des Moines campus.

Why this matters: The contrast between the substantial increase in CEO compensation and the ongoing job losses at Wells Fargo raises questions about the bank'spriorities and the impact on its workforce, highlighting the need for greater accountability in corporate leadership. This story also underscores the ongoing struggle of the banking industry to regain public trust in the wake of scandals and regulatory issues.

This latest round of job cuts brings the total number of publicly announced layoffs at Wells Fargo's West Des Moines location to 302 since April 2023. Over a longer period, the bank has eliminated a total of 1,418 positions in the Des Moines metro area since 2018, based on WARN records.

The layoffs were not unexpected, as CEO Charlie Scharf had previously announced in late 2023 that Wells Fargo was anticipating severance costs ranging from $750 million to $1 billion in the coming year. In a prepared statement, Wells Fargo Spokesman Mike Slusark said, "We regularly review and adjust staffing levels to align with market conditions and the needs of our businesses. We work very hard to identify opportunities for employees in other parts of the company so we can retain as many employees as possible. Where it's not possible, we provide assistance, such as severance and career counseling."

The 40 employees affected by the most recent layoffs will have their positions terminated effective June 30. This follows previous job cut announcements at the Jordan Creek campus in February and March of this year. In 2023, Wells Fargo, which until recently was the largest employer in the Des Moines metro, reduced its overall workforce by 11,300 positions, or 4.7%, according to YahooFinance.

The bank continues to struggle with the fallout from a 2016 scandal in which employees opened millions of fraudulent accounts, often in an effort to meet aggressive sales targets. Federal regulators imposed additional oversight and a $1.95 trillion asset cap that restricts the San Francisco-based bank's ability to grow until it addresses the underlying issues.

The contrast between the substantial increase in CEO Charlie Scharf's compensation and the ongoing job losses at Wells Fargo has raised questions about the bank's priorities and the impact on its workforce. As Wells Fargo strives to meet regulatory requirements and recover from the account fraud scandal, the human cost in terms of layoffs cannot be overlooked. The bank faces the challenge of balancing its financial objectives with the well-being of its employees as it copes with a period of restructuring and seeks to regain public trust.

Key Takeaways

  • Wells Fargo lays off 40 employees at its Jordan Creek campus in West Des Moines, Iowa.
  • CEO Charlie Scharf's 2023 compensation package increases by $4.5 million to $29 million.
  • This is the latest round of layoffs, with 302 jobs cut since April 2023 and 1,418 since 2018.
  • Wells Fargo anticipates severance costs of $750 million to $1 billion in the coming year.
  • The bank struggles to regain public trust after a 2016 scandal and faces regulatory issues.