Wells Fargo is weighing changes to wealth unit amid cost-cutting
Wells Fargo is considering restructuring its wealth-management business as the bank pushes for $4 billion in cost-cuts by the end of next year.
“Our wealth and investment-management group is reimagining our business to become more efficient,” spokeswoman Shea Leordeanu said in an emailed statement. “Whatever the outcome, we will continue to serve our clients across multiple channels.”
The wirehouse recently reported advisor headcount shrank by 258 advisors year-over-year.
The San Francisco-based lender may trim about 1,000 jobs through attrition and cut 100 regional managers, the Wall Street Journal reported late Monday citing sources it didn’t identify.
No final decisions have been made, Leordeanu said in the statement.
Wells Fargo has also suffered from advisor attrition, with brokers leaving in recent quarters for the bank's smaller regional and independent rivals. In the first quarter, the frim's advisor force, which includes bank, wirehouse and independent advisors, shrank by 258 advisors year-over-year, according to the company’s earnings statement.
Overhauling the wealth management unit would mark the latest cost-cutting effort by the bank, which has seen expenses climb in recent years amid regulatory fines and higher legal costs stemming from a fake-account scandal that exploded in 2016.
Wealth management head Jon Weiss said at the firm’s investor day last month that the unit is targeting around $600 million in savings by 2020.