Wells Fargo cuts hundreds of jobs across United States

SAN FRANCISCO: Wells Fargo & Co has cut hundreds of jobs in its mortgage business across the United States, people familiar with the bank’s plans said.

Higher inflation and rapidly rising mortgage rates have started to weigh on the housing market as buying homes becomes costlier, hiting what was until last year a booming industry.

Refinancing has also come under pressure due to the US Federal Reserve’s aggressive monetary policy tightening campaign.

The latest reductions in the lender’s mortgage unit add to thousands already made by Wells Fargo this year, the Bloomberg report said.

“We regularly review and adjust staffing levels to align with market conditions and the needs of our businesses,” the bank said in an emailed statement to Reuters but did not give any details on the number of employees or units affected.

In June, Jpmorgan Chase & Co, the largest US bank by assets, had also started laying off employees in its mortgage business.

The reductions took place across the country, according to people familiar with the plans, who asked not to be identified discussing private information. The latest wave comes amid ongoing Federal Reserve rate hikes to tame persistent inflation, pushing mortgage rates toward their highest levels in two decades. Refinancings have dried up and some potential homebuyers have been sidelined in the process.

“We regularly review and adjust staffing levels to align with market conditions and the needs of our businesses,” a representative for Wells Fargo said in a statement.