If you’ve been scrolling through LinkedIn or checking the business headlines lately, you’ve probably seen the name Wells Fargo popping up in a way that feels a little like déjà vu. Honestly, the news that one of the "Big Four" banks is cutting staff isn't exactly a shocker anymore. But the Wells Fargo layoffs we're seeing as we move into 2026 are actually kinda different from the massive, headline-grabbing slashes of the past.
It's not just about one bad quarter. Basically, the bank is in the middle of a massive identity shift, and the people working there are feeling the brunt of it.
Why the headcount keeps dropping
When Charlie Scharf took over as CEO back in 2019, the bank had about 275,000 employees. Fast forward to the start of 2026, and that number has plummeted by about 25%. We’re talking roughly 205,000 people left.
The bank just reported its Q4 2025 earnings, and they took a massive $612 million hit just for severance costs. Think about that for a second. They spent over half a billion dollars just to let people go. It’s a staggering amount of money, and it sent the stock tumbling about 4.6% in a single day because investors were spooked by the expense.
The "Forever Layoff" strategy
Most of us are used to the old-school layoff style: a company announces 10,000 jobs are gone, the news cycles it for 48 hours, and then everyone moves on. Wells Fargo is doing something much more subtle.
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They’re leaning into what some experts call "rolling layoffs" or "forever layoffs." Instead of one big axe, they’re making smaller, quieter cuts—a few dozen here, sixty people there—happening once or twice a month. In Iowa alone, at their West Des Moines campus, they cut over 460 workers throughout 2025. The largest single-day cut was only 63 people.
It’s a way to trim the fat without the PR nightmare of a "mass layoff" notification. Scharf has been pretty blunt about this, saying he wants to use "attrition as our friend." Translation? When someone quits, they just don't hire a replacement. The job basically vanishes into thin air.
AI is finally the "Boogeyman"
For years, we’ve heard that AI was coming for our jobs. In 2026, it’s finally happening at Wells Fargo in a tangible way. Scharf recently admitted that the impact of AI on headcount is going to be "extremely significant."
It’s already happening in the engineering department. They’ve reported that generative AI tools have made their coders about 30% to 35% more efficient. While they haven't fired all the coders yet, they’re getting way more work done with the same amount of people. Eventually, that math leads to fewer open seats.
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Where the cuts are hitting hardest
It’s not hitting everyone equally. If you’re in a role that involves "process"—basically anything that can be mapped out and automated—you’re in the danger zone.
- Home Lending: This area has been absolutely gutted, with headcount down over 50% in the last three years.
- Back-Office Operations: Anything involving manual data entry or "bureaucracy," as Scharf calls it, is being phased out for AI-driven systems.
- Retail Branch Staff: They’ve closed over 2,280 branches since 2017. As more people use the app, the need for a physical person behind a counter in a brick-and-mortar building keeps shrinking.
The Asset Cap twist
Here is the weird part: Wells Fargo is actually doing "well" financially in some areas. The Federal Reserve finally lifted the $1.95 trillion asset cap that was slapped on them after the fake-accounts scandal years ago.
You’d think a bank that is finally allowed to grow again would be hiring, right? Nope. They are using that new freedom to grow their balance sheet, not their staff. They want to be a "lean, mean, profitable machine" that handles more money with fewer humans.
What to do if you’re affected
If you’re currently at the bank or looking for a role there, you've gotta be realistic. The "old" Wells Fargo that acted like a stable utility is gone.
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1. Don't wait for the tap on the shoulder
If your role involves repetitive tasks or middle-management oversight of automated processes, start looking now. The bank has already signaled that 2026 will see continued reductions.
2. Pivot to "AI-Plus" roles
The people who are safe—or at least safer—are those who know how to manage the AI tools. If you’re a coder, you need to be the one using the AI to write that 35% more code, not the one being replaced by it.
3. Check your severance rights
Wells Fargo’s recent $612 million severance pool means they are paying out. If you get caught in a "rolling layoff," make sure you understand the package. Usually, it’s based on years of service, but in 2026, these packages are becoming more standardized and less negotiable.
4. Look at the competitors
While Bank of America and Citi are also trimming down, they are often hiring in specific growth areas like wealth management or specialized commercial lending. Wells Fargo is currently very focused on internal "efficiency," which is corporate-speak for "shrinking."
Honestly, it’s a tough time to be in traditional banking. The Wells Fargo layoffs aren't a sign of a dying company—they’re a sign of a company that’s decided it doesn't need as many people to make a profit.
Your next steps:
- Update your resume with a focus on "efficiency" and "technology integration" rather than just "process management."
- Audit your current daily tasks. If more than 50% of what you do could be described to a computer, it’s time to start an external job search.
- Monitor the WARN Act notices for your specific state; since Wells Fargo is doing "micro-layoffs," these are often the only way to see the true scale of the cuts in real-time.