August 22, 2013: 2:22 PM ET
NEW YORK (CNNMoney)
Wells Fargo said it is reducing its workforce by 2,300 employees because of rising interest rates and declines in mortgage refinancing.
"Yesterday, at locations across the country, we provided a 60-day notice of displacement to approximately 2,300 mortgage team members," the financial firm said Thursday in a prepared statement.
Wells Fargo (WFC, Fortune 500) said it was culling its staff as "the result of less mortgage refinancing volume than we experienced through 2012 and early 2013."
Wells Fargo spokesman Alfredo Padilla said the reductions include 291 jobs in Tempe, Ariz., but would not specify any other locations affected.
Related: Mortgage rate climb to two-year high
Mortgage rates have been volatile over the past year. The average rate of a 30-year mortgage hit a two-year high of 4.58% this week, according to Freddie Mac, after slumping to 3.35% in May, which is one of the lowest rates on record. The average 30-year rate bottomed out at 3.31% in November of 2012, which was an all-time low.
Padilla would not say how many total people the company employs. To top of page
well then it's not much of a scandal if everyone involved knew they were living on a temporary phenomenon.Back in 2009 I worked there as a temp in the centralized underwriting division. Huge hiring back then as mortgage refi's boomed. One of the parking ramps went from near empty to full. Well, it was bound to end someday since the low interest rates were only the result of fed control rather than of a free market.
Their CEO must have needed another $20million in bonuses to stay. You have to keep your talent, you know.
Yes, because it's the company's job to make sure everyone is always employed forever.
In the real world, if your job no longer exists, you no longer have one.
Yes, because it's the company's job to make sure everyone is always employed forever.
In the real world, if your job no longer exists, you no longer have one.
That attitude about workers would be more acceptable if you didn't ignore the huge abuses of executive compensation. THAT'S all justified and appropriate, of course, right?
That attitude about workers would be more acceptable if you didn't ignore the huge abuses of executive compensation. THAT'S all justified and appropriate, of course, right?
presumably, it's a move to cut costs right? If that's the case, the chairman can reduce his ~$23 million / yr compensation.
That attitude about workers would be more acceptable if you didn't ignore the huge abuses of executive compensation. THAT'S all justified and appropriate, of course, right?
presumably, it's a move to cut costs right? If that's the case, the chairman can reduce his ~$23 million / yr compensation.
These were temp jobs. They just notified them that the "temp" part has kicked in. These were not 30 yr employees terminated the day before retirement. And it seems they were hired for the refinance boom which has indeed died down. Outrage not found in this instance.
Not sure what executive compensation has to do with people whose jobs are no longer necessary.
Maybe you can explain?
That attitude about workers would be more acceptable if you didn't ignore the huge abuses of executive compensation. THAT'S all justified and appropriate, of course, right?
I always pegged him as a trust fund brat with a HUGE guilt complex. Spawned from a family of limousine liberals that hire illegals to do the gardening which makes them feel they're doing their part on the social justice front.What is stopping you from becoming an executive and receiving slavish compensation?
Work ethic
Point is, don't be a warrior for cutting worker incomes and fight for the executive income abuses. The US has gone from ~25x worker pay to hundreds - before tax cuts for them.
Business does include laying off unneeded workers - but it also includes not overpaying executives something it's failing badly at. Where's the concern for that?
Clearly the guy doing it now is just a greedy asshole.
with interest rates expected to rise refinancing and real estate activity will dwindle. So they don't need the personal. Maybe they can get part time jobs in the new obama economy selling obama care.