Wells Fargo anticipates further workforce reductions and increased severance expenses in the fourth quarter, according to CEO Charlie Scharf. Speaking at a Goldman Sachs financial services conference, Scharf attributed the expected cuts to ongoing efficiency drives and the increasing role of artificial intelligence within the company. Wells Fargo is a diversified financial services company providing banking, investment management and mortgage services to consumers and businesses. Headquartered in San Francisco, the company operates across the United States and internationally.
Scharf emphasised that AI would significantly impact the bank’s operations, improving efficiencies and potentially reducing headcount. While AI would not entirely replace human workers, it would change how work is performed. The implementation of AI technologies is expected to be gradual, rolled out over the next year and beyond.
Wells Fargo’s employee numbers have already decreased significantly, from 275,000 when Scharf joined in 2019 to just over 210,000 as of September 30, 2025. Scharf highlighted the efficiency gains already achieved through AI, noting a 30% to 35% increase in coding efficiency among its engineering workforce.
Addressing potential acquisitions, Scharf stated that Wells Fargo would only pursue deals that offered strong financial returns and clear strategic value for investors. The bank is under no pressure to acquire companies simply to boost earnings, he added.
