Wells Fargo anticipates more layoffs amid commercial real estate woes

Wells Fargo expects further layoffs as it attempts to improve efficiency amid a commercial real estate slump.

The prominent U.S.-based financial institution has been cutting jobs since the third quarter of 2020. Since that time, Wells Fargo has laid off nearly 40,000 employees.

Chief Financial Officer Mike Santomassimo told Reuters on Sept. 12 that, “I do think that there’s more to do, and you’ll see that through the headcount number.”

Wells Fargo has previously made large cuts to its mortgage business. The bank’s commercial real estate business is also facing pressure, as many buildings remain empty because of the popularity of remote work.

Major layoffs continue

The latest round of job cuts at Wells Fargo comes amid a flurry of layoffs in 2023.

Major North American companies, including Volvo, Roku, RBC, Dell, Telus, Amazon, Microsoft, Ritual, and Meta, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Termination agreements for Wells Fargo employees

In Canada, non-unionized employees at the bank are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Rights to severance for federally regulated employees
• Severance entitlements during mass layoffs
• Severance packages in a recession

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.