Wells Fargo Plans Job Cuts and AI Rollout for 2026

Wells Fargo is set to reduce its workforce further, anticipating increased severance expenses in the fourth quarter of 2023. CEO Charlie Scharf made this announcement during a Goldman Sachs financial services conference, where he emphasized the transformative impact of artificial intelligence (AI) on the bank’s operations.

Scharf explained that the bank had already undergone its budgeting process and projected a smaller workforce for the upcoming year, even prior to the integration of AI. “We’ll likely have more severance in the fourth quarter,” he stated, indicating that the changes are part of a broader strategy aimed at enhancing operational efficiency.

AI’s Role in Workforce Changes

According to Scharf, AI is poised to significantly alter how work is performed at Wells Fargo. He noted that while AI would not completely replace human roles, it would lead to changes in job functions and responsibilities. He characterized the shift as a “positive reality” for the bank, reflecting a commitment to improve efficiency.

Wells Fargo plans to implement AI gradually over the next year and beyond. Scharf highlighted the potential of AI to enhance productivity, citing data that showed generative AI tools within the bank’s engineering team were already 30 to 35 percent more efficient in writing code. He clarified that although the workforce had not yet been reduced, the bank was achieving greater output, demonstrating real efficiency gains.

Future Growth and Acquisition Strategy

The bank’s recent history has been marked by significant challenges, including the fake-accounts scandal that led to public backlash and billions in penalties. Following the lifting of a $1.95 trillion asset cap by the U.S. Federal Reserve in June 2023, Wells Fargo is now positioned to explore growth opportunities. Analysts and investors expect the bank to pursue strategic expansion under Scharf’s leadership.

Scharf emphasized that any potential acquisitions would need to deliver strong financial returns and clear value for investors. He expressed a cautious approach to growth, stating, “We have no interest in doing something which could just add a little bit of earnings to the company.” This reflects a strategic focus on sustainable growth rather than opportunistic acquisitions.

As of September 30, 2025, Wells Fargo’s workforce had decreased to just over 210,000 employees, down from 275,000 employees when Scharf took over in 2019. The anticipated workforce reductions and the gradual integration of AI underscore the bank’s commitment to navigating the evolving financial landscape while maintaining efficiency and strategic focus.