Wells Fargo to shrink workforce by up to 10 percent

Wells Fargo & Co. CEO Tim Sloan announced on Thursday in a companywide town hall meeting that the company will trim 5 percent to 10 percent of its total employee base over the next three years.

Currently, Wells Fargo employs 265,000 team members, which means that the company expects to reduce its headcount by as much as 26,500. The cuts will be carried out through displacement and normal attrition.

"Wells Fargo takes very seriously any change that involves its team members, and as always, we will be thoughtful and transparent, and treat team members with respect," Sloan said. "We have robust programs to make impacted team members aware of other job opportunities within Wells Fargo and provide support as they transition to the next phase of their careers."

Sloan said that a leaner workforce will better position Wells Fargo for "long-term success and operational excellence." In addition to reducing employee numbers, the company will strengthen risk management, simplify operations, leverage digital automation and divest noncore businesses.

"We are continuing to transform Wells Fargo to deliver what customers want — including innovative, customer-friendly products and services — and evolving our business model to meet those needs in a more streamlined and efficient manner," Sloan said.