Per a Bloomberg article, Wells Fargo & Company (WFC - Free Report) is planning to lay off 700 employees from its Philippines branch in order to shift all the tech employees to limited locations.
Most of the jobs are expected to shift to India, where it already has about 12,000 tech employees. Also, per the article, the bank has communicated to about 650 of its tech workers in the United States that they will need to relocate to a bigger market to retain their jobs.
The headcount of tech employees in Manila, Philippines has fallen to 50 from 750. The changes are part of the strategy laid down by the new technology head, Saul Van Beurden.
Wells Fargo's spokesman Peter Gilchrist said that the bank is providing the affected employees a long notice period. Also, workers will keep their jobs till the end of the year. “It’s part of a “global workplace strategy that emphasizes co-location and collaboration,” he said.
Also, recently, Wells Fargo announced its revised business organizational structure to ensure greater focus and accountability. The consumer bank will be divided into a consumer lending division and a retail banking division, while the wholesale bank will be split into a commercial banking unit, and a corporate and investment banking unit. However, the wealth management unit will remain intact.
Also, the company has introduced a Strategy, Digital Platform & Innovation group, which will be responsible for Corporate Strategy and its Digital and Innovation teams. This will allow Wells Fargo to focus on planning for the digital future and investing in customer experience.
Shares of Wells Fargo have gained 6.5% over the past six months compared with 20.4% growth recorded by the industry.
Currently, the stock carries a Zacks Rank #3 (Hold).
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