Wells Fargo layoffs: Bank cuts 79,000 jobs in 6 years, says AI will drive more workforce reductions

Wells Fargo has indicated that its years-long workforce reduction is far from over, with senior executives saying advances in artificial intelligence and technology are allowing the bank to operate with fewer employees while continuing to invest in areas critical to future growth.

The comments came during the bank's second-quarter earnings call, where executives outlined how automation, digital tools and AI are reshaping day-to-day operations. Although the US banking giant continues to trim its overall workforce, it insists the strategy is not about halting recruitment altogether. Instead, hiring is increasingly being redirected towards specialised roles that support technology, cybersecurity and customer services.

Chief Financial Officer Mike Santomassimo said the bank still sees room to reduce employee numbers as efficiency initiatives gather pace. According to the Charlotte Observer, he told analysts, "We expect that we should be able to run this company with less headcount than we've got today." He added that improvements driven by technology and AI are enabling the lender to achieve productivity gains faster than before.

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The latest comments suggest Wells Fargo expects digital transformation to play an even bigger role in determining the size and structure of its workforce in the coming years.

Six years of workforce reductions continue

Workforce reductions have become a defining feature of Wells Fargo's operational overhaul under Chief Executive Charlie Scharf. The bank has now recorded 24 consecutive quarters of declining headcount, reflecting a sustained effort to simplify operations and improve efficiency.

By the end of the second quarter, Wells Fargo employed around 1,97,000 people globally. That represents a reduction of approximately 3,500 employees compared with the previous quarter and around 15,000 fewer than a year earlier. Over the past six years, the bank has eliminated roughly 79,000 positions as part of its broader restructuring programme.

Scharf has repeatedly argued that streamlining operations allows the bank to become more efficient while improving the way it serves customers. Rather than treating headcount reduction as a short-term cost-cutting exercise, Wells Fargo views it as part of a long-term transformation supported by advances in automation and digital technologies.

Artificial intelligence has become an increasingly important part of that strategy. Financial institutions around the world are investing heavily in AI tools to automate routine processes, improve customer support, strengthen fraud detection and assist employees with administrative tasks. As these technologies mature, many banks believe they can improve productivity without expanding their overall workforce.

Hiring continues in strategic areas despite overall cuts

Despite signalling further reductions in total employee numbers, Wells Fargo says recruitment remains an important part of its strategy.

According to the Charlotte Observer, the bank continues to hire in businesses that directly support long-term expansion, particularly across 20 designated growth markets where it sees opportunities to deepen its presence. Recruitment is also focused on technology specialists, cybersecurity professionals and customer-facing teams responsible for strengthening relationships with clients.

Scharf said investments in technology are helping improve productivity while also enhancing the experience for customers. He added that these initiatives are supporting the recruitment and retention of financial advisers, a key area of competition among major US banks.

The approach reflects a broader trend across the financial services industry. Rather than imposing blanket hiring freezes, many lenders are reducing staffing in operational and administrative functions while expanding teams responsible for digital infrastructure, cybersecurity, AI development and revenue-generating businesses.

As banks continue to modernise their operations, workforce planning is increasingly shifting away from simply reducing costs towards reallocating talent into areas expected to drive future growth.

For Wells Fargo, that means the overall number of employees is likely to continue falling even as recruitment remains active in selected functions. The bank's latest update signals that AI is no longer viewed merely as a productivity tool but as a technology that is reshaping how one of America's largest lenders plans its workforce for the years ahead.