Adriana Jaycie
Active member
Two major banking firms, Wells Fargo and USAA, have announced plans to reduce their workforce by nearly 5,000 workers by the end of 2022. The two companies are planning to eliminate jobs in the mortgage and real estate divisions. Both companies plan to eliminate their bonus plans and replace them with performance-based compensation. USAA has also agreed to sell its investment management division for $850 million.
Wells Fargo has been facing criticism for their high-pressure sales practice and has been laying off employees to deflect the criticism. The bank is expected to post losses of $13 billion to $18 billion in its second quarter and is not expected to remain profitable until 2022. The company has also been struggling with scandals over minority lending. In the state of Iowa, Wells Fargo has reportedly cut 49 positions at its Des Moines and West Des Moines campuses. Those affected will receive pink slips in June or July.
In the same vein, DocuSign plans to cut around 9% of its workforce and says the layoffs are part of a restructuring plan. Meanwhile, Ford plans to lay off 2,000 salaried employees and 1,000 contract employees starting September 1, 2022.
The United Services Automobile Association, or USAA, is a large group of companies that provide banking, insurance, and investing services to military families. However, there are concerns that the company's excessive bureaucracy will hurt its reputation. It recently cut 90 jobs in its mortgage division, saying that it needed to cut the number of employees because of a projected 34% drop in real estate loans.
The layoffs are expected to hit the mortgage division as well as its real estate unit. Approximately 5% of the company's workforce will be affected. The affected employees will be given 60 days' notice and will be eligible for transition and severance assistance. The announcement comes as the economy has shrunk for the second straight quarter, and some economists are predicting a technical recession.
Wells Fargo has been facing criticism for their high-pressure sales practice and has been laying off employees to deflect the criticism. The bank is expected to post losses of $13 billion to $18 billion in its second quarter and is not expected to remain profitable until 2022. The company has also been struggling with scandals over minority lending. In the state of Iowa, Wells Fargo has reportedly cut 49 positions at its Des Moines and West Des Moines campuses. Those affected will receive pink slips in June or July.
In the same vein, DocuSign plans to cut around 9% of its workforce and says the layoffs are part of a restructuring plan. Meanwhile, Ford plans to lay off 2,000 salaried employees and 1,000 contract employees starting September 1, 2022.
Redfin
Announcing that it will be laying off a portion of its workforce, Redfin has sparked a wave of alarm among real estate professionals. It is the latest sign of the slowing housing market. While the company insists that layoffs will only be made when necessary, demand for Redfin services fell by 17% in May. This means fewer sales and less money to invest in larger projects.The United Services Automobile Association, or USAA, is a large group of companies that provide banking, insurance, and investing services to military families. However, there are concerns that the company's excessive bureaucracy will hurt its reputation. It recently cut 90 jobs in its mortgage division, saying that it needed to cut the number of employees because of a projected 34% drop in real estate loans.
The layoffs are expected to hit the mortgage division as well as its real estate unit. Approximately 5% of the company's workforce will be affected. The affected employees will be given 60 days' notice and will be eligible for transition and severance assistance. The announcement comes as the economy has shrunk for the second straight quarter, and some economists are predicting a technical recession.
