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February 14, 2020

Wells Fargo to retrench about 700 workers in Philippines

American banking major Wells Fargo is reportedly planning to eliminate close to 700 jobs in Manila, the Philippines in tech overhaul.

The bank plans to move a portion of these jobs to India where almost 12,000 tech employees are already working, a bank’s spokesman Peter Gilchrist told Bloomberg.

As a result of this decision, the tech workforce in Manila is expected to fall from 750 to 50.

The firm is also notifying 650 tech workers in the US that to keep their jobs they will need to relocate to a larger market.

Gilchrist in a statement said that it’s part of a “global workplace strategy that emphasises co-location and collaboration.

“This strategy will ultimately provide meaningful benefits to our employees and customers, but we recognise this change will have a significant impact on some employees and their families.”

The redundancies follow the strategy rolled out last year by the bank’s technology head Saul Beurden.

The bank’s new CEO Charles Scharf reserved $1.5bn for legal costs related to its sales scandal which led to a 55% drop in its fourth-quarter profit.

Since last year, regulators have been eyeing bank’s technology after the failure of one of its data centers in the US.

It has also been reported that employees won’t lose their jobs until the end of this year.

Gilchrist added that the bank is providing “a significant notice period and extensive support to all impacted employees.”

Many top global banks have been shutting down branches and cutting jobs in an attempt to boost profitability.

Recently, reports emerged that Societe Generale is planning to axe 120 jobs in London to cut operational costs.

UniCredit had unveiled plans to trim employee headcount in Italy by 6,000.

Last month, JPMorgan also announced plans to slash hundreds of jobs across its consumer division.

In the same month, HSBC had begun the process of divesting its French retail business.

Reports emerged that RBS planned to cut thousands of jobs at Natwest as a part of its cost-cutting strategies.

Goldman Sachs has also announced that it will move some jobs to offices in London and Bengaluru, India.

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