Wells Fargo Expects Severance Costs Of $750M-$1B In Q4: Report
Portfolio Pulse from Lekha Gupta
Wells Fargo & Co (NYSE:WFC) CEO Charlie Scharf announced expected severance costs of $750M-$1B in Q4 due to increased focus on efficiency and potential layoffs. Despite economic downturn concerns, Scharf remains optimistic about the economy's strength, credit card growth, and consumer resilience. WFC faced potential credit losses on office real estate of $359M in Q3 and recently laid off fewer than 50 bankers. Additionally, WFC is facing a class-action lawsuit over unpaid overtime. WFC shares saw a slight increase in premarket trading.
December 06, 2023 | 12:50 pm
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Wells Fargo expects Q4 severance costs up to $1B, signaling layoffs and efficiency measures. The bank remains optimistic about the economy and consumer strength, despite facing a lawsuit over unpaid overtime.
The expected severance costs indicate a short-term negative impact due to layoffs and restructuring, which could be offset by the CEO's positive outlook on the economy and credit card growth. The ongoing lawsuit adds uncertainty, but the slight premarket stock increase suggests a neutral short-term impact.
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