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Wells Fargo Readying To Cut Thousands Of Jobs: Report

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Amid the worsening coronavirus pandemic and mounting costs, banking major Wells Fargo & Co. is preparing to cut thousands of jobs starting later this year, Bloomberg Law reported.

Citing people with knowledge of the confidential talks, the report noted that executives are drafting plans that may ultimately eliminate tens of thousands of positions from its about 263,000 workforce, following "pressure to dramatically reduce costs".

The San Francisco-based bank has been struggling for years with higher expenses due to legal costs and fines related to scandals. In February, the bank had agreed to pay $3 billion to settle criminal and civil investigations into its sales practices scandal. The company employees allegedly opened millions of unauthorized bank accounts in order to meet unrealistic sales goals.

Earlier, federal regulators had ordered former Chief Executive John Stumpf to pay $17.5 million fine for his role in the bank's scandal.

Wells Fargo recently said it would donate around $400 million to help small businesses impacted by the ongoing COVID-19 pandemic.

The bank is targeting to distribute a total of $10 billion to small business customers under the requirements of the Paycheck Protection Program or PPP, and is donating all gross processing fees from the program.

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