Wells Fargo Plans for Job Cuts and AI Integration

Wells Fargo is reportedly looking at more job reductions and increased severance packages as the fourth quarter approaches, according to CEO Charlie Scharf.

The bank anticipates that artificial intelligence (AI) will significantly influence its operations, especially in terms of efficiency and staffing.

While AI is not expected to completely replace human roles, it will likely alter how work is conducted, Scharf mentioned. These anticipated job cuts appear to align with the bank’s ongoing efforts to enhance efficiency.

“As we work through our budgeting, we’ve been predicting headcount reductions even before considering AI. We may see higher severance costs in the fourth quarter,” Scharf noted during the Goldman Sachs Financial Services Conference.

He emphasized the crucial role AI plays in boosting efficiency and potentially reducing the workforce.

Wells Fargo aims to gradually implement AI beyond 2026 as part of its plan to streamline operations. Scharf characterized this AI development as a “positive reality” for the organization.

In a recent discussion, he highlighted how AI could lead to workforce reductions, yet it also opens up significant technological opportunities.

Since Scharf took the helm in 2019, the bank’s workforce has shrunk from 275,000 to just over 210,000 as of September 30, 2025.

Scharf pointed out that the banking sector has yet to fully tap into the efficiencies that AI can provide. “Currently, our generative AI tools are making our engineering team about 30% to 35% more efficient at coding. We haven’t reduced our workforce in coding, but we’re achieving more—this is real efficiency,” he explained.

When discussing possible acquisitions, Scharf made it clear that Wells Fargo would only look into those offers that promise significant financial returns and strategic benefits. “I’m not interested in anything that offers even a modest advantage to the company,” he asserted.

In June, the U.S. Federal Reserve lifted the cap on Wells Fargo’s total assets to $1.95 trillion, a limit imposed in 2018 due to various scandals surrounding the bank.

The cap was put in place after investigations revealed that employees had opened fraudulent accounts to meet sales goals.

Reports indicated that staff had transferred funds without customer consent, charged unnecessary fees, and enrolled customers in credit products without their authorization.