Wells Fargo is planning to shut down its operations in South Carolina, while simultaneously expanding its presence in Chicago.

Wells Fargo Announces Major Changes and Expansion Plans

In a series of recent announcements, Wells Fargo has revealed a series of significant changes to its operations, including workforce reductions, branch closures, and expansion plans in key cities.

The bank, which has been reducing its real-estate portfolio, has cut its workforce by approximately 40,000 since the third quarter of 2020. This reduction includes several rounds of layoffs in its mortgage-lending units. Employees who choose not to transfer within the bank will receive a formal 60-day notice.

One of the most notable changes is the planned expansion in Chicago, a $175 million, multiyear investment that could add 200 jobs. Wells Fargo aims to expand its retail footprint in Chicago from seven branches to 30, with the first of the new branches set to open in November. The bank's goal is to have a branch within 15 minutes of 95% of Chicago's population.

In South Carolina, the corporate office in Columbia could close by June 30, 2024. The bank notified South Carolina officials of the pending closure on Thursday. Up to 525 employees based in Columbia could be affected, and they will be offered the opportunity to transfer to another Wells Fargo office.

Other banks are also undergoing changes. Truist aims to reduce a "sizable" portion of its workforce to save $750 million in gross costs in the next 12 to 18 months. Citi is undergoing a larger reorganization, and companies like Wells Fargo, Microsoft, and Meta have announced planned employee layoffs in recent weeks.

In addition to these changes, Barclays and Goldman Sachs are targeting bottom performers for layoffs. Wells Fargo, in its efforts to support impacted employees, will offer severance and career counseling.

These changes come as part of a broader trend in the banking industry, with several banks, including Citi, Truist, Barclays, and Goldman Sachs, indicating upcoming layoffs. As the industry adapts to new challenges and opportunities, it will be interesting to see how these changes unfold in the coming months.