A Wells Fargo spokesman said Friday that a round of job cuts the company is making as it downsizes its U.S. mortgage staff does not affect the Charlotte region.
The Des Moines Register reported Thursday that San Francisco-based Wells has told 350 mortgage and retail lending employees that their positions are being eliminated. According to the newspaper, the layoffs were triggered by rising mortgage interest rates, which has slowed loan refinancing.
"There are no layoffs in Charlotte connected with that," Wells Fargo spokesman Josh Dunn told the Observer.
Wells Fargo has a mortgage-serving operation in Fort Mill, S.C. The company employs roughly 20,750 in the nine-county Charlotte region, Dunn said.
Dunn said the bank does not provide breakdowns of employment by job type. So, it was not immediately clear Friday how many workers are in the Fort Mill operation.
“The low interest rate environment of the past few years allowed us to staff up to meet the demand we were seeing,” Wells Fargo spokeswoman Angie Kaipust told the Register. “As this fast-paced demand for refinancing is slowing somewhat, we need to reduce staff to align with the business need.”
Banks across the country are keeping a close eye on refinancing, which has boomed in recent years because of record-low interest rates. As rates climb, refinancing is expected to dry up, leading banks to predict a decrease in mortgage revenues.
"We remain concerned about revenue for the back half of the year," Goldman Sachs Group wrote in a report Friday. Mortgage origination income could fall by 35 percent in the second half of 2013, the report said.
Friday, July 19, 2013
No Wells Fargo layoffs for Charlotte, spokesman says
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8 comments:
They are just flat out lying. There have been people getting laid off from Wells Fargo in Charlotte every since November of last year. Just in small enough numbers to keep from reporting it.
They just said there are no lay-offs connected with "that" (the downsize of their mortgage biz). I wouldn't be surprised if there were other lay-offs elsewhere in small enough numbers that they don't have to report them. I don't view that as a flat out lie. In fact I'm pleasantly surprised by how many jobs we have been able to keep. That's one of the benefits of being a low-cost provider.
Who farted?
anonymous comments allowed; on a story about the evil banks.But not allowed on any others?Hmmm.CO your bias is showing...
Not true 6:54.
Anonymous comments to the CO have been allowed on other stories such as education articles. Weiss Fargo knows how to play the game to make themselves look good, especially in light of th erecent lay-offs reported by their rival, Bank of America. The recent lay-offs were announced recently only to be followed by a report of third quarter profits posting at 1 billion. Wow! Go figure? Where is the public outrage against the banks versus Those levied against CMS and public education? Hypocrites! Don't forget, the mega banks use YOUR money to finance the corporate welfare deals and other dirty loans. You cry out against public education spending because it is "tax payer" money. U.S. citizens need to really get educated on the dealings of banks and Congresswhich is another issue. They don't even pay into the soon to be defunct Social Security system or healtcare funds because they have their own system and are set for life even after one lousy term. Americans unite and stop being fooled behind games that divide us according to race and color. Green my fellow Americans is the true divisive color. God help the USA!
They lay people off in Charlotte on a consistent basis all of the time. They just do it a little at a time in order to stay under the radar and to save face to the public. I know because a lot of my colleagues and friends are casualties. Wachovia was a better institution.
Basically -- when refi is booming, more folks are needed. When rates go up - loans go down. Hence, not as many people needed. But the folks on here simply want free and easy -- give it to me just because... They don't want to work for it, earn it... Take economics 101 please..It's not that hard. Just people who want free and outs a rides cant understand it. How about this -- Work relentlessly to make yourself irreplaceable. Guess what, when layoffs come - they get moved to other departments.. Those who sit around for the free paycheck get to go home... go figure..
Setting aside adjustments for severance packages, setting aside the effect of wage differences (between the those being laid off and those being retained), and recognizing that wages alone are not the only expense for retaining employees, it seems that about 1% of WF's total workforce will be required to make about about a 100% sacrifice. On the other hand, 100% of the workforce could be required to make only a 1% sacrifice (via across-the-board salary reductions, task re-assignments, and perhaps some re-locations, etc.). This second alternative would permit maximum resource focus on the company's prime objective, which is (or should be) satisfying customers' needs.
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