Wells Fargo Anticipates Workforce Reductions, Introduces AI Implementation Plan for 2026

Wells Fargo's CEO, Charlie Scharf, discussed potential job cuts and increased severance costs during a recent interview at a Goldman Sachs financial services conference in New York City. Scharf revealed that the bank's workforce is expected to shrink as part of their efficiency strategy, stating, 'We have gone through the budgeting process, and even pre-artificial intelligence, we do expect to have fewer employees as we move into next year.' He emphasized the significance of artificial intelligence in enhancing operational efficiencies and reshaping the work environment, but noted that it would not completely replace human labor. Scharf elaborated that AI will be gradually integrated over the next year and further, framing these developments as beneficial for the bank's efficiency. Previously, Wells Fargo had a workforce of 275,000 when Scharf joined in 2019, but that number has since decreased to just over 210,000. Moreover, he mentioned that while AI tools have improved coding efficiency by 30% to 35%, the bank has not significantly reduced its coding staff yet. On the acquisition front, Scharf confirmed that Wells Fargo will only pursue opportunities that offer substantial financial returns and clear strategic advantages, stressing their lack of urgency to acquire companies just for minor earnings boosts.