Wells Fargo expects more job cuts and higher severance costs in the fourth quarter as it prepares to roll out artificial intelligence technology across the business from 2026.
Chief executive Charlie Scharf told attendees at a Goldman Sachs financial services conference that the bank’s headcount would fall even without the impact of AI. Reuters reported that Scharf said Wells Fargo “expects to have less people as we go into next year,” signalling another round of reductions after several years of steady workforce contraction.
He added that the bank would “likely have more severance in the fourth quarter,” reflecting restructuring activity already built into its budgeting cycle.
Scharf described AI as a structural shift rather than a short-term cost lever. He said the technology was “extremely significant” for driving efficiencies and could reshape how core functions are carried out, though he stressed it would not wholly replace human roles. Reuters noted that he has previously linked potential workforce declines to the bank’s efficiency agenda rather than AI alone.
Wells Fargo plans to deploy AI “gradually over the next year and beyond,” a process Scharf cast as a “positive reality” as the bank seeks productivity gains. He cited early signs of improvement within engineering teams, where generative AI tools have made software developers 30–35% more efficient. “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,” he said.
The bank has already undergone substantial downsizing in recent years. Reuters reported that Wells Fargo employed 275,000 people when Scharf joined in 2019; by 30 September 2025, its workforce had fallen to just over 210,000.
Scharf also addressed the bank’s expansion strategy following the U.S. Federal Reserve’s decision in June to lift a $1.95 trillion asset cap imposed after the fake-accounts scandal. While the removal of the cap allows Wells Fargo to grow, Scharf said the bank would only pursue acquisitions that deliver strong financial returns and clear strategic value. “We have no interest in doing something which could just add a little bit of earnings to the company,” he said.
The bank to outline more detail on its AI deployment and restructuring plans in early 2026. Investors will be watching closely for signals on how quickly the technology could reshape staffing levels and operational efficiency across one of the United States’ largest lenders.