Wells Fargo Plans Workforce Reductions, Gradual AI Implementation

Wells Fargo is anticipating further reductions in its workforce as the bank prepares for a significant shift in operations driven by artificial intelligence (AI). CEO Charlie Scharf announced on December 9 that the company expects to incur higher severance expenses in the fourth quarter of 2023 during a conference hosted by Goldman Sachs. Scharf indicated that the changes are part of a broader strategy to enhance operational efficiency.

During his remarks, Scharf stated, “We have gone through the budgeting process, and even pre-artificial intelligence, we do expect to have less people as we go into next year.” He emphasized that the bank’s workforce decline is not solely a consequence of AI but also reflects ongoing efforts to streamline operations. The CEO noted that Wells Fargo would likely see increased severance payments as it implements these changes.

AI’s Impact on Workforce and Operations

Scharf highlighted the transformative potential of AI, particularly regarding operational efficiency and its implications for employee numbers. While he acknowledged that AI may not entirely replace human workers, he asserted it would significantly alter how tasks are performed. He described the anticipated integration of AI as a “positive reality” for the bank, suggesting that it would lead to improved productivity.

According to Scharf, the implementation of AI tools has already demonstrated substantial efficiency gains. He pointed out that generative AI tools within the engineering department have achieved a productivity increase of between 30% and 35% in coding tasks. “We’ve not reduced the number of people we have coding today, but we’re getting a lot more done, and that’s real efficiency,” Scharf remarked.

Wells Fargo’s workforce has decreased from 275,000 employees in 2019 to just over 210,000 employees as of September 30, 2025. As the bank continues to evolve, Scharf reaffirmed that the integration of AI is part of a strategic vision aimed at long-term growth.

Strategic Growth Amidst Challenges

The recent lifting of a $1.95 trillion asset cap by the U.S. Federal Reserve has opened new avenues for Wells Fargo to pursue growth opportunities. This move concluded a key restriction linked to the bank’s previous fake-accounts scandal, allowing the institution to expand its operations.

Scharf expressed a cautious approach to acquisitions, stating that Wells Fargo would only consider opportunities that offer strong financial returns and strategic value. “We have no interest in doing something which could just add a little bit of earnings to the company,” he said, indicating that the bank is focused on substantive growth rather than superficial gains.

As Wells Fargo navigates these changes, the focus remains on leveraging technology to enhance efficiency while managing workforce adjustments. The bank’s strategic decisions will likely shape its future trajectory as it seeks to balance innovation with operational stability.