Wells Fargo signals more job cuts and AI rollout in 2026 – report

Core Insights - Wells Fargo anticipates further workforce reductions and increased severance costs in the fourth quarter, driven by the impact of artificial intelligence (AI) on operations and staffing levels [1][2] - The bank plans to incrementally introduce AI through 2026 to enhance operational efficiency, viewing this as a "positive reality" for the organization [3] - Since CEO Charlie Scharf's tenure began in 2019, the employee count has decreased from 275,000 to just over 210,000 as of September 30, 2025, indicating ongoing efforts to improve efficiency [4] Workforce and AI Impact - The anticipated workforce reduction aligns with Wells Fargo's strategy to improve efficiency, with Scharf noting that even before AI, the bank expected to have fewer employees in the coming year [2] - AI is expected to drive significant efficiencies, with Scharf highlighting that generative AI tools have made engineering staff 30% to 35% more efficient in coding tasks [4] Strategic Acquisitions - Scharf stated that Wells Fargo will only consider acquisitions that provide substantial financial returns and clear strategic benefits, avoiding any that would only marginally increase earnings [5] - The US Federal Reserve lifted a $1.95 trillion cap on Wells Fargo's total assets in June 2023, which had been imposed in 2018 due to previous scandals [5][6]