Wells Fargo layoffs include 34 in Minneapolis

  • Article by: Jennifer Bjorhus , Star Tribune
  • Updated: July 22, 2013 - 9:07 PM

The bank blamed slowing demand for mortgage refinancing.

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drewscarJul. 22, 13 5:35 PM

unbeliveable greed - the market moves a little a 356 employees will lose their job in order to maintain profits in the wake of increase rates. Still the company will invest $400 million in new buildings in Minneapolis and expansion in West Des Moines. These 356 people mean little to Wells Fargo. Come on - were is the loyality to the employees????

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littlepeopleJul. 22, 13 7:48 PM

Drewscar: I know one of the laid off employees and they're actually paying him for the next three months and asking him not to work. To recap: he's being paid not to work and he still gets to apply for other jobs without the stigma of being "unemployed." I literally don't know how they could be any kinder.

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boozlesJul. 22, 1310:19 PM

Its too bad Wells Fargo wasn't allowed to fail after they swindled their customers and helped create the Great Recession. I wish them nothing but failure. Terrible company.

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nostrichJul. 22, 1310:31 PM

The economists at Wells Fargo project the potential mortgage market at a 3 month minimum and through the next economic year. Paying someone not to work is hedging the bet against a market downturn. Right now, they are projecting a contracting mortagage market. If the mortgage market turns, there will be a "recall". They are also hedging their ability to align job functions with existing local labor markets. Being efficient and nimble is a good thing for shareholders. The only fly in the ointment is the market itself. The 3 month hedge is an attempt to keep labor costs at a minimum. The downside of being wrong is bad customer service and high "new hire" cost.

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stingballJul. 23, 13 8:09 AM

drewscar, you are wrong. Companies ramp up labor when business activity increases and ramp down when business activity decreases. It is normal, required labor management that any prudent company would do. Did you not read the article where it mentioned that Wells is paying the employees for 3 months and helping them find other jobs in the company? And were you calling them greedy when mortgage refinancing was booming and they hired many people to meet this demand? Wells Fargo is a great company that also does many good things in the Twin Cities. I know because I work there.

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raineyrooJul. 23, 13 8:32 AM

drewscar - loyalty to employees died along time ago and is not coming back. As someone who has ascended to a director-level position, I've told people that have worked for me in the past, if you can extract a few thousand more per year out of someone else, take it. I follow that same advise myself and do not have a problem leaving an employer high and dry to move onto a postion for more dollars.

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palsarJul. 23, 1310:04 AM

"I follow that same advise myself and do not have a problem leaving an employer high and dry to move onto a postion for more dollars." -- And people wonder why companies don't show any loyalty to employees when you have employees like this (director level). These are the same people w/i the companies making the decisions. They don't feel loyalty so it reflects in their management style. A corp is only as good as the eomployees working w/i it.

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citypersonJul. 23, 13 5:29 PM

Maybe the public is catching on to Wells Fargo. This is the bank that does not offer free checking to its poorest customers.

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zekefaxJul. 23, 13 9:13 PM

The mortgage business is loaded with temporary or contract employees. Have these people already been let go? My experience with large companies is that they pay a lot of lip service to being employee friendly when in fact they are bottom line friendly and don't particularly care about their employees. The layoffs don't surprise me. This might also be a method to get rid of those employees who don't bow down to the powers that be and firing would open the door to law suits.

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harp0072Jul. 24, 13 5:50 PM

Wells does not count Contract workers as employees. Its a good bet alot more then 35 people lost there job today. If banks cant make money at 4.35 percent what happens when they go back to normal rates when the economy is fully recovered? Remember those low rates are being paid for by our tax dollars.

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