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WFC to Reshape Its Workforce for AI Era, Signals More Job Cuts in 2026
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Key Takeaways
Wells Fargo expects further 2026 staff cuts as efficiency efforts and new technology reshape its operations.
AI tools boosted engineering productivity 30-35% as the bank prepares a gradual AI rollout next year.
WFC continues branch reductions and structural changes, targeting $15B in gross expense cuts by 2025-end.
At the Goldman Sachs 2025 conference held on Dec. 9, Wells Fargo & Company (WFC - Free Report) signaled that its workforce could shrink further in 2026 as part of a broader push to improve efficiency and incorporate artificial intelligence (AI) across its operations. Speaking at the conference, CEO Charlie Scharf stated that the bank expects higher severance costs in the current fourth quarter and is preparing for staff reductions as it moves into next year.
WFC: AI Rollout Set to Begin Next Year
Wells Fargo CEO Charlie Scharf emphasized that AI will play a central role in reshaping how the bank operates, noting that AI is “extremely significant” both for driving efficiency and for its “potential” impact on future headcount.
The bank plans to introduce AI gradually over the next year and continue expanding its use beyond 2026. Scharf characterized the transition as a “positive reality,” suggesting that AI-enabled efficiencies will support long-term operational improvements.
While acknowledging that AI is likely to contribute to workforce reductions, Scharf also pointed to significant areas of opportunity, particularly in technology roles. He noted that generative AI tools have already boosted productivity within the bank’s engineering teams by roughly 30-35%.
WFC Rationale: Unlocking Efficiency Through Structural Transformation
Wells Fargo is steadily advancing its multi-year transformation aimed at driving greater efficiency and operational discipline. Since 2020, the bank has pursued substantial cost-reduction initiatives —simplifying its organizational structure, consolidating branches and reducing its workforce from roughly 268,531 employees in December 2020 to about 210,821 as of Sept. 30, 2025. These changes reflect a deliberate shift toward a leaner, less bureaucratic operating model.
While discussing future growth, Scharf noted that since the removal of the asset cap in June 2025, the bank now has room to grow. But he indicated that any acquisitions or expansion will be very selective, only those offering strong returns and strategic value. He emphasized the bank is “under no pressure” to snap up firms just to boost numbers.
Beyond workforce reductions and digital investments, Wells Fargo is also optimizing its physical footprint to further lower structural costs. The bank continues to refine its branch location strategy, with total branches declining 2.1% year over year to 4,108 as of the third quarter of 2025. Management views these actions as essential to improving long-term operating efficiency.
Collectively, these initiatives are on track to generate substantial savings, with the company expecting $15 billion in gross expense reductions by 2025-end. Taken together, they signal that WFC is repositioning itself for a future in which productivity and scalability depend less on headcount and more on streamlined processes, automation and modernized technology infrastructure.
WFC’s Price Performance & Zacks Rank
Shares of Wells Fargo have gained 26.6% year to date compared with the industry’s growth of 34.7%.
This month, according to Business Today news, which was published on MSN, UBS Group AG (UBS - Free Report) is preparing to cut up to 10,000 employees globally by 2027 as it advances the integration of Credit Suisse.
Since acquiring Credit Suisse in 2023, the company has already eliminated approximately 15,000 positions, mainly from overlapping roles created by the merger. Looking ahead, workforce reduction may accelerate depending on the progress of Credit Suisse’s integration. These reductions are aimed at removing redundant positions, improving operational efficiency and supporting the broader structural consolidation required to integrate Credit Suisse’s operations fully.
In June 2025, BlackRock, Inc. (BLK - Free Report) announced plans to cut 300 jobs, affecting more than 1% of its workforce. This marked the company’s second reduction this year, following a January cut of approximately 200 positions aimed at realigning resources with the firm’s strategic priorities.
The workforce reductions aim to streamline operations and optimize resources, supporting BlackRock’s efforts to improve profitability and integrate its recent acquisitions.
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WFC to Reshape Its Workforce for AI Era, Signals More Job Cuts in 2026
Key Takeaways
At the Goldman Sachs 2025 conference held on Dec. 9, Wells Fargo & Company (WFC - Free Report) signaled that its workforce could shrink further in 2026 as part of a broader push to improve efficiency and incorporate artificial intelligence (AI) across its operations. Speaking at the conference, CEO Charlie Scharf stated that the bank expects higher severance costs in the current fourth quarter and is preparing for staff reductions as it moves into next year.
WFC: AI Rollout Set to Begin Next Year
Wells Fargo CEO Charlie Scharf emphasized that AI will play a central role in reshaping how the bank operates, noting that AI is “extremely significant” both for driving efficiency and for its “potential” impact on future headcount.
The bank plans to introduce AI gradually over the next year and continue expanding its use beyond 2026. Scharf characterized the transition as a “positive reality,” suggesting that AI-enabled efficiencies will support long-term operational improvements.
While acknowledging that AI is likely to contribute to workforce reductions, Scharf also pointed to significant areas of opportunity, particularly in technology roles. He noted that generative AI tools have already boosted productivity within the bank’s engineering teams by roughly 30-35%.
WFC Rationale: Unlocking Efficiency Through Structural Transformation
Wells Fargo is steadily advancing its multi-year transformation aimed at driving greater efficiency and operational discipline. Since 2020, the bank has pursued substantial cost-reduction initiatives —simplifying its organizational structure, consolidating branches and reducing its workforce from roughly 268,531 employees in December 2020 to about 210,821 as of Sept. 30, 2025. These changes reflect a deliberate shift toward a leaner, less bureaucratic operating model.
While discussing future growth, Scharf noted that since the removal of the asset cap in June 2025, the bank now has room to grow. But he indicated that any acquisitions or expansion will be very selective, only those offering strong returns and strategic value. He emphasized the bank is “under no pressure” to snap up firms just to boost numbers.
Beyond workforce reductions and digital investments, Wells Fargo is also optimizing its physical footprint to further lower structural costs. The bank continues to refine its branch location strategy, with total branches declining 2.1% year over year to 4,108 as of the third quarter of 2025. Management views these actions as essential to improving long-term operating efficiency.
Collectively, these initiatives are on track to generate substantial savings, with the company expecting $15 billion in gross expense reductions by 2025-end. Taken together, they signal that WFC is repositioning itself for a future in which productivity and scalability depend less on headcount and more on streamlined processes, automation and modernized technology infrastructure.
WFC’s Price Performance & Zacks Rank
Shares of Wells Fargo have gained 26.6% year to date compared with the industry’s growth of 34.7%.
Wells Fargo currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps By Other Finance Firms
This month, according to Business Today news, which was published on MSN, UBS Group AG (UBS - Free Report) is preparing to cut up to 10,000 employees globally by 2027 as it advances the integration of Credit Suisse.
Since acquiring Credit Suisse in 2023, the company has already eliminated approximately 15,000 positions, mainly from overlapping roles created by the merger. Looking ahead, workforce reduction may accelerate depending on the progress of Credit Suisse’s integration. These reductions are aimed at removing redundant positions, improving operational efficiency and supporting the broader structural consolidation required to integrate Credit Suisse’s operations fully.
In June 2025, BlackRock, Inc. (BLK - Free Report) announced plans to cut 300 jobs, affecting more than 1% of its workforce. This marked the company’s second reduction this year, following a January cut of approximately 200 positions aimed at realigning resources with the firm’s strategic priorities.
The workforce reductions aim to streamline operations and optimize resources, supporting BlackRock’s efforts to improve profitability and integrate its recent acquisitions.